This is HUGE news for VETS!H.R. 299 – Blue Water Navy Act
VA Loan Limits went away because the Department of Veterans Affairs can now back loans that exceed the conforming loan limit. A bill eliminating this cap was signed into law on June 25th, 2019.
As of January 1, 2020, veterans seeking to obtain what are commonly referred to as jumbo loans, or Veterans living in higher-cost markets, will no longer be subject to the Federally-established VA loan limit aka Conforming loan limit maximums. This means veterans may obtain no-down payment VA-backed loans in all areas of the country, regardless of home prices.
The “Blue Water Act” makes some important changes to the VA home loan program. Some of them are alterations to help pay for some of the measures required by the act, others are procedural changes, while still others are fundamental alterations to the basic structure of VA loans.
The changes include:
· No upper loan limit on VA mortgages as of 1 January 2020.
· An increase in the VA Loan Funding Fee for all non-exempt borrowers.
· Purple Heart recipients are now exempt from paying the VA loan funding fee the same as those who receive or
are entitled to receive VA compensation.
If you or your client is a Veteran, active, retired, or honorably discharged, call for quick home loan approval.