President Trump Signs Bill To Eliminate Cap On VA Loans

This past Tuesday night, President Trump signed into law H.R. 299, the “Blue Water Navy Vietnam Veterans Act” was signed into law by President Trump on Tuesday night. H.R. 299, which, among other things good for veterans, eliminates the cap on VA Loans.  Currently, the VA can only “guarantee” (they insure 25% of the loan amount for lenders, which is why lenders are willing to make 100% loans to veterans) loans up to the limit established by the Federal Home Loan Mortgage Corporation Act (FHLMCA).  Currently, the loan limit is $484,350 however, after the new law goes into effect on January 1, 2020, the VA will be able to provide their guarantee to lenders on loan amounts of any size for veterans.

This is a huge victory for veterans as well as for the real estate industry.

 

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