2020 VA Loan UPDATES On Guidelines And Requirements

This ARTICLE On 2020 VA Loan UPDATES On Guidelines And Requirements Was PUBLISHED On July 31st, 2020
There are 2020 VA Loan UPDATES On Guidelines And Requirements on VA home mortgages.
  • The housing market has been booming for the past several years
  • There is more demand for homes versus inventory
  • Due to the strong demand for homes, home prices kept on increasing year after year
  • Many homebuyers were having problems buying homes due to loan limits imposed on government and conventional loans
  • HUD, VA,  and the FHFA have been increasing loan limits for the past four years due to rising home prices
  • 2020 FHA loan limits are now capped at $331,760
  • 2020 Conventional loan limits were capped at $510,400
  • VA loan limits normally follow conventional loan limits
  • However, as of January 1st, 2020, the VA eliminated the maximum VA loan limits
  • Effective January 1st, 2020, there is no maximum loan limit caps on VA loans
  • Borrowers can now buy a higher-priced home with a VA loan without worrying about the maximum VA loan limit

In this article, we will discuss and cover the 2020 VA Loan UPDATES On Guidelines And Requirements.

Positive News On 2020 VA Loan UPDATES

One of the positive news on 2020 VA Loan UPDATES is a new law allowing homebuyers eligible for VA loans with a valid COE to purchase higher-end homes with no money down.

  • Effective January 1st, 2020, there is no maximum VA loan limit
  • Homebuyers who are eligible for VA loans can purchase a higher-end home with 100% financing
  • Also, VA funding fees paid by reserve members of the military and active veterans will now be the same

Prior to 2020, reserve members of the military paid higher VA funding fees than active veterans.

2020 VA Loan UPDATES On Blue Water Navy Vietnam Veterans Act

2020 VA Loan Updates include benefits for Vietnam Veterans through the Blue Water Navy Vietnam Veterans Act.

Jammi Cash of Gustan Cho Associates is an expert on VA loans. Jammi Cash said the following about the Blue Water Navy Vietnam Veterans Act:

Originally, non-disabled Veteran home buyers would pay for new VA benefits by increased VA loan fees. Actually, as much as .35% – .50% of the loan amount would be added in fees. However, the final version of the bill will lessen the burden of additional fees and supposedly add a smaller percentage to certain loans. In addition to providing more health benefits to Vietnam Veterans, there is another huge benefit for VA qualified buyers within this new law! Regretfully, many Vietnam Veterans have experienced serious, service-related health issues, mostly resulting from exposure to Agent Orange. One example includes Veterans contracting ALS or Lou Gehrig’s disease. Often, this doesn’t show up until later in life. Due to serving on land, contracting ALS is presumed to be from exposure to Agent Orange and VA is providing assistance to keep him comfortable. Conversely, assistance has been lacking for service members who served off-shore of Vietnam and now have Vietnam related health issues. They are known as “Blue Water” Veterans. The part of this wonderful Act which helps military buyers and homeowners is that VA loan limits are going away. VA loan limits 2019 and before were tied to conventional loan limits Therefore, this is a huge win for several types of VA borrowers!

VA Removes The Maximum VA Loan Limits
The Blue Water Navy Vietnam Veterans Act now allows homebuyers who are eligible for VA loans to purchase a home without worrying about the VA maximum loan limits with 100% down payment.
  • Any homebuyer with a COE who wants to purchase a home over $510,400 can now purchase a home with a VA loan with 100% financing
  • No need to qualify for a jumbo loan
  • VA loans are the best mortgage loan program in the nation
  • Due to the government guarantee, lenders can offer VA loans with 100% financing without mortgage insurance at competitive mortgage rates
  • VA agency mortgage guidelines are lenient
  • The VA promotes homeownership for homebuyers who are eligible with a certificate of eligibility (COE)
  • There are no minimum credit score requirements nor a maximum debt to income ratio cap on VA loans
  • Borrowers with a prior bankruptcy, foreclosure, deed in lieu of foreclosure, a short sale can qualify for a VA loan after meeting a two year waiting period
  • Borrowers in an active Chapter 13 Bankruptcy repayment plan can qualify for a VA loan without the bankruptcy being discharged and trustee approval via manual underwriting
  • There is no waiting period after Chapter 13 Bankruptcy discharged date to qualify for VA loans
Any Chapter 13 bankruptcy discharge that has not been seasoned for 24 months need to be a manual underwrite.

Qualifying For A VA Loan With A National Mortgage Company With No Lender Overlays 

Gustan Cho Associates is a five-star national mortgage company licensed in multiple states with no lender overlays on VA loans. Over 75% of our borrowers at GCA Mortgage Group are folks who could not qualify for a mortgage at other lenders due to their overlays. The team at Gustan Cho Associates can be reached at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holiday.

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