I’ll keep this short and sweet. In June 2019 the VA made some expansions to their disability program to cover veterans from Agent Orange exposure. In order to cover these new costs they made changes to the VA home loan that will greatly benefit military members and veterans looking to stop paying someone else and start investing in themselves! Below are the Key talking points. For more information check out the link below.
No Loan Limits
What does this mean for the buyer? As long as they can get approved for the loan, they are no longer limited on the amount they can borrow. Previously the limit was $484,350 without a down payment. You could still purchase more than that but would have to make a down payment. This no longer applies. If you can get approved for $650K the VA will back it with no PMI and no Down Payment.
Temporary Funding Fee Increase
So what will the funding fee changes be?
Currently 1st time home buyers pay 2.15% that will increase to 2.3% for the next 2 years then revert back to current rates.
Not your first home? The fee is currently 3.3% and will go up to 3.6% for the next two years the revert back also.
Check out the link below for more details but these are the key points that stood out. As always feel free to ask questions.