Law Eliminates VA Loan Limit Cap On VA Home Loans

This Article Is About Law Eliminates VA Loan Limit Cap On VA Home Loans 

Breaking News: Law Eliminates VA Loan Limit Caps On VA Home Loans:

  • The Department of Veterans Affairs (The VA) no longer has a maximum loan limit due to President Trump’s Law Eliminates VA Loan Limit on VA Loans
  • Due to this new law, lenders can now originate and fund VA Loans that exceed the conforming loan limit of $484,350
  • President Donald Trump has signed Law Eliminates VA Loan Limit Caps on Tuesday, June 25th, 2019
  • New Law Eliminates VA Loan Limit of $484,350 on VA Loans in all counties of the United States
  • The Blue Water Navy Vietnam Veterans Act allows borrowers to purchase homes with VA Loans that is higher than the current 2019 conforming loan limit of $484,350 with 100% financing with zero down payment

In this blog, we will discuss the Law Eliminates VA Loan Limit Caps on VA Mortgages.

Benefits Of VA MortgagesBenefits Of VA Mortgages

The Department of Veterans Affairs (The VA) is the federal agency that insures VA Home Loans to Lenders in the event borrowers default and forecloses on their VA Loans.

  • The VA is not a lender. The VA does not originate, fund, nor services VA Mortgages
  • The role of the Department of Veterans Administration is to insure the VA Loans originated and funded by lenders that go into default
  • The VA will insure and partially guarantee the loss lenders take
  • Due to the government guarantee by the VA, lenders can offer 100% financing at low rates on VA Loans
  • Our government created and launched VA Loans to reward active and retired members of the United States Military with a Certificate Of Eligibility (COE) with this phenomenal loan program
  • VA Loans are for primary owner-occupant properties only

More On VA Home Loans

VA Loans is the best loan program available in the United States and limited to eligible veterans of the United States Military.

  • In early June, the United States Senate has approved a bill with regards to new law eliminated VA Loan Limit
  • This bi-partisan bill was unanimously approved and waiting for President Donald Trump’s signature to make it officially into law
  • On Tuesday evening June 25th, 2019, President Trump signed the bill which is now law
  • A great victory for veterans who want to purchase a higher end home

Alex Carlucci, a Senior Vice President of Gustan Cho Associates and an expert on VA Loans said the following:

The move comes after a decades-long fight for veterans to receive health care benefits for diseases related to Agent Orange exposure. The bill will fast-track disability compensation” for as many as 90,000 affected former service members. In an earlier draft of the bill, the cost of these benefits was to be financed by raising VA loan fees 0.35% to 0.5% for non-disabled veterans. Trade groups lobbied against such an increase, and as a result, the approved bill reduces the proposed fee increases. But, it does not completely eliminate a bump in fees for VA loans. Other housing industry trade groups lobbied to ensure veteran benefits would be extended without a significant increase to VA loan fees. Realtors support efforts to boost veteran participation in this program, but we also believe VA loan guarantee fees should be based on the risk of the loan made, not the costs of other VA programs or benefits. As we aim to ensure our nation’s veterans have every possible opportunity to achieve the American Dream of homeownership, trade groups have remained a strong supporter of the VA home loan guaranty program. This vital tool encourages private lenders to offer favorable home loan terms to qualified veterans and provides a much-needed resource to those who have sacrificed so much for this country.

VA Eligibility Requirements On VA LoansVA Eligibility Requirements On VA Loans

There are two types of VA Lending Requirements:

  1. Minimum VA Agency Guidelines
  2. Lender Overlays By Individual Lenders

All borrowers need to meet minimum VA Agency Guidelines. However, lenders can have their own lending requirements called lender overlays. Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no lender overlays on VA Loans. We just go off the minimum VA Agency Guidelines.

Here are the Minimum VA Agency Guidelines On VA Home Loans:

  • There are no minimum credit score requirements on VA Loans as long as the borrower can get an approve/eligible per automated underwriting system
  • There is no maximum debt to income ratio requirements
  • There is a two-year waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • Outstanding collections and charge off accounts do not have to be paid off to qualify for VA Loans
  • VA and FHA Loans are the only two mortgage loan programs that allow manual underwriting
  • Borrowers in Chapter 13 Bankruptcy Repayment Plan can qualify for VA Loans during the plan without the Chapter 13 being discharged with Trustee Approval and manual underwriting
  • There is no waiting period after Chapter 13 Bankruptcy discharge date to qualify for VA Mortgages via manual underwriting
  • VA allows up to 100% LTV on cash-out refinance mortgages

Now the maximum VA Loan Limit of $484,350 has been eliminated. There is no maximum loan limit on VA Loans.

For more information on the content of this article or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.

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