VA Loan Information

VA Loan Information Guidelines UPDATES

Gustan Cho Associates are mortgage brokers licensed in 48 states

This guide will cover VA loan information guidelines updates for 2023. There are VA Loan Information 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 increasing yearly. Many homebuyers were having problems buying homes due to loan limits imposed on government and conventional loans.

Due to rising home prices, HUD, VA, and the FHFA have increased loan limits for the past four years. Alex Carlucci is a VA loan information expert and a senior loan officer. Alex explains the VA is removing the maximum loan limit on VA loans.  As of 2024, there have been some updates to the VA loan guidelines, which could be relevant for veterans and active-duty military personnel looking to use this loan type for home purchases. Here are some of the key updates:

Updated Guidelines for VA Loans in 2024

Loan Repayment Relief: There have been consolidations related to the VA’s disaster modification and loan deferment options for borrowers affected by COVID-19. This includes specific guidance on handling loans during times of financial hardship. Increased Oversight: Before terminating a loan, the VA conducts a review to ensure that borrowers have received a reasonable opportunity to retain homeownership and avoid foreclosure. This includes more rigorous checks on how loans are serviced.

VA Loan Limits

Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means no down payment is required for these loans, and the VA guarantees up to 25% to the lender if the borrower defaults on a loan over $144,000.

VA Eligibility Requirements

The basic service requirements for eligibility have been reiterated, focusing on the duration of service, either during wartime or peacetime. The specific days required for eligibility remain consistent with past years.

Underwriting and Processing

Detailed steps and timelines for how VA loans should be processed and submitted to the VA have been provided to ensure transparency and efficiency in handling these loans. These updates aim to improve the VA loan process, making it more streamlined and supportive for those who qualify. If you’re considering a VA loan, it’s advisable to review the latest guidelines directly from VA resources or consult a loan specialist with expertise in VA loans to ensure you have the most current and relevant information. Click here to get qualify for VA loan

VA Home Loan Guidelines on Credit Scores

The Department of Veterans Affairs does not have a minimum credit score requirement. You can have credit scores as low as 500 with some lenders. I’ve seen some instances with no credit scores, but they are far and between. However, the better the score, the easier to obtain financing. We can offer VA loans with no overlays. As long as borrowers can get approve/eligible per the automated underwriting system, we are set to go. We have no other overlays on VA loans and follow VA Home Loan Guidelines. To get an approve/eligible per the automated underwriting system, a 580 credit score is highly recommended, with timely payments in the past 12 months.

VA Home Loans Guidelines and How Does Process Work?

Because VA offers 100% financing for veterans with poor credit or limited resources, it is the cheapest type of mortgage program available. What exactly are VA loans? The Veterans Administration guarantees the loans and does not act as the lender. The Veteran has to have a VA certificate of eligibility to qualify. Better known as a DD214 VA Service Requirements. Activity-duty service. Ninety days consecutive days of active service. Six-plus years in the Reserves or National Guard. National Guard and reserves. 181 days of active duty service during peacetime.

Other Factors Where Borrowers Meet VA Home Loan Guidelines

There are circumstances if they were discharged due to hardship, reduction in force, discharged due to
government convenience, some medical conditions, or service-related disability where borrowers can meet VA Home Loan Guidelines: Dishonorably discharged Veterans are ineligible for this loan. VA Mortgage Loan Benefits:

  • 100% Financing
  • Lower interest rates
  • Higher DTI ratios
  • Lower closing costs
  • No mortgage insurance
  • Easier to qualify for
  • No credit score requirements
  • No debt-to-income ratio caps

Gustan Cho Associates Mortgage Group has no overlays on VA Home Loans.

VA Loan Information UPDATES on Maximum Loan Limits

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FHA loan limits are now capped at $498,257. Conventional loan limits are capped at $766,550. 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, VA loans have no maximum loan limit caps. VA loans no longer have a maximum loan limit. You can go as high as you can afford. As long as you get an approve/eligible per automated underwriting system and have strong residual income, you will be able to get an AUS approval with a high loan amount. Borrowers can now buy a higher-priced home with a VA loan without worrying about the maximum VA loan limit. This article will discuss and cover the VA loan information updates on guidelines and requirements.

Positive News On VA Loan Information UPDATES

VA Loan Information

One of the positive news on VA loan information 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. VA loans no longer have maximum loan limit caps on VA loans:

There is no waiting period after the Chapter 13 Bankruptcy discharge date to qualify for VA loans. Any Chapter 13 bankruptcy discharge that has not been seasoned for 24 months needs to be a manual underwrite.

Homebuyers 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. Before 2020, military reserve members paid higher VA funding fees than active veterans. VA loan information updates include benefits for Vietnam Veterans through the Blue Water Navy Vietnam Veterans Act.

VA Loan Information UPDATES On Blue Water Navy Vietnam Veterans Act

The Blue Water Navy Vietnam Veterans Act now allows homebuyers eligible for VA loans to purchase a home without worrying about the VA maximum loan limits with a 100% down payment. Any homebuyer with a COE who wants to purchase over $726,200 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). VA loans have no minimum credit score requirements or maximum debt-to-income ratio cap. Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu of foreclosure, or 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.

Loan Limits on VA Loans

Depending on the state and the county VA loan limit increased to $453,100 in 2018 from $424,100, except in 220 high-cost counties where they are higher. This represents a 6.8% increase this year. For comparison, there are 3,234 counties and county equivalents. As of 2020, the United States Department of Veterans Affairs has eliminated the maximum loan limit on VA loans. VA loans no longer have a maximum loan limit cap on VA loans.

Debt-To-Income Ratio Guidelines on VA Loans

VA has set no loan limits on debt-to-income ratios, but the lenders have their own DTI limits, often called lender overlays, so finding the right lender with no overlays is key. Typically, lenders have a 41% limit, but I have seen Back end ratios as high as 65% qualify for the higher DTI with strong compensating factors. It depends on how the Automated Underwriting System reads borrowers’ credit and income profiles. Compensating Factors are key. Here are examples of compensating factors:

  • Large amounts of cash
  • Minimal increase in current housing payment (low payment shock)
  • High net worth
  • Ability to make a down payment
  • High credit score
  • High net worth

VA Cash-Out Refinance

The VA’s Cash-Out allows veterans to take cash out of their property up to 100% of the property’s appraised value. No other loan will allow this to pay off debt, home improvements, or schooling. As home values continue to rise, this may be a great tool for veterans to use with refinancing.
VA IRRL Streamline
If you currently have a VA loan, they allow you to do a refinance to lower your rate with very few documents. All you need is a job, a credit score with no latest on the mortgage for the last 12 months, and no appraisal. If you have any questions about VA loans, I’ve been involved in finance for 33 years and take pride in helping Veterans that have served our country.

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

Gustan Cho Associates is a five-star national mortgage company licensed in multiple states with no lender overlays on VA loans. Over 80% of our borrowers at Gustan Cho Associates could not qualify for a mortgage at other lenders due to their overlays.

Gustan Cho Associates are mortgage brokers and correspondent lenders licensed in 48 states, including Washington, DC, Puerto Rico, and the U.S. Virgin Islands.

Gustan Cho Associates has a national reputation for being able to do mortgage loans other lenders cannot do.  We are experts in helping borrowers with credit scores down to 500 FICO and high debt-to-income ratio. The team at Gustan Cho Associates can be reached at 800-900-8569.  Text us for a faster response. Or email us at gcho@gustancho.com. We are available evenings, weekends, and holidays seven days a week. Click here to gqualify for a VA loan with Lender with no overlay

FAQ: VA Loan Information Guidelines UPDATES

  • What are the main updates to the VA loan guidelines for 2024? The updates include loan repayment relief options for those affected by COVID-19, increased oversight to prevent unnecessary foreclosures, and detailed steps for processing VA loans to enhance efficiency and transparency.
  • Has there been a change in VA loan limits for 2024? Yes, eligible veterans, service members, and survivors with full entitlement no longer face loan limits over $144,000. This means no down payment is required for these loans, and the VA guarantees up to 25% to the lender if the borrower defaults on a loan above $144,000.
  • What are the basic service requirements for VA loan eligibility? The eligibility focuses on the duration of service, which remains consistent with past years. Specific days required for wartime or peacetime service are reiterated in the guidelines.
  • What about the maximum loan limits for VA loans? Starting January 1, 2020, the VA has removed maximum loan limits. This means you can buy a higher-priced home if you have an “approve/eligible” and high residual income. Always calculate your net income and review and adjust your budget regularly to ensure financial stability.
  • Is there any positive news regarding VA loans? A significant update is that eligible homebuyers can now purchase high-end homes with no money down due to the elimination of maximum loan limits, effective January 1, 2020. This includes benefits for Vietnam Veterans through the Blue Water Navy Vietnam Veterans Act, allowing 100% financing for homes over $726,200.
  • What are the underwriting changes for VA loans in 2024? The updates have provided detailed steps and timelines for processing VA loans, promoting more transparency and efficiency in the loan-handling process.
  • Can veterans with past bankruptcies qualify for VA loans? Suppose a borrower has a history of bankruptcy, foreclosure, deed-in-lieu of foreclosure, or a short sale. In that case, they can still qualify for a VA loan after a two-year waiting period. However, those in an active Chapter 13 Bankruptcy repayment plan may qualify without the bankruptcy being discharged, with trustee approval via manual underwriting.
  • Who can help you qualify for a VA loan with no lender overlays? Gustan Cho Associates, a national mortgage company licensed in multiple states, specializes in VA loans with no lender overlays. They assist borrowers who may not qualify elsewhere due to credit or debt-to-income ratio issues.
  • How can I get more specific guidance or qualify for a VA loan? For detailed guidance or to qualify for a VA loan, it is advisable to review the latest guidelines from VA resources or consult a loan specialist with expertise in VA loans. Contacting a reputable lender like Gustan Cho Associates can also provide personalized assistance.

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