Buying a home for veterans will get a little easier come January 1, 2020, especially those veterans moving up to a more expensive home, as a result of the Blue Water Navy Veterans Act of 2019 signed into law by President Trump in June 2019. The primary focus of the Act was to provide disability benefits to veterans who served in Vietnam, it also made significant changes to the VA Home Loan benefit available to all veterans. The VA home loan changes go into effect on January 1, 2020. Below are highlights of the changes to the VA home loan benefit:
- Conforming Loan Limits – There will no longer be a limit, or cap, on the amount for a no-downpayment home loan to a veteran.
- VA funding fee increase – The VA charges a funding fee to support the VA home loan program. The fee is currently 0.15% for Veterans and Servicemembers and on January 1st will increase to 0.30%.
- Purple Heart – The VA funding fee will be waived for active Servicemembers who have earned a Purple Heart.
- Native America Direct Loan – As of January 1st, the existing cap of $80,000 will be removed for Veterans using their entitlement for a VA Native American Direct loan to purchase (or build) a home on Federal trust land.
To find out more about the changes to the VA home loan program, click on the button below to connect with Mike McCarthy,
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