This ARTICLE On 2020 VA Loan UPDATES On Guidelines And Requirements
- 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.
VA Removes The Maximum VA Loan Limits
- 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
August 6, 2020 - 3 min read