It’s now easier for veterans to use their Department of Veterans Affairs home loan benefit to purchase, refinance or construct a home with no down payment, no matter how much the home costs.
That’s because VA home county loan limits were eliminated as part of the Blue Water Navy Vietnam Veterans Act of 2019 for veterans and service members with full benefit entitlement.
Here are four things you need to know about the changes, according to VA’s Home Loan Guaranty Service:
- The VA has historically only guaranteed home loans up to county conforming home limits (CLL), which are determined by the Federal Housing Finance Agency. This meant that the lender, not the VA, would require you to pay up to a 25 percent down payment on any amount above the CLL.
- With the changes, that is no longer the case for first-time homebuyers or homebuyers who have sold their home when purchasing, refinancing or constructing a new home.
- Conforming loan limits will impact those who want to purchase a second (or subsequent) home using a VA home loan.
- For those that currently have a VA home loan and plan to keep it and purchase a new home using a VA-backed loan that is more than $144,000, the rules are different:
- You must be able to afford all the loans at the time of closing
- The next home you purchase must be your primary residence.
- VA may be able to back your next loan, but the amount the VA will back depends on your remaining entitlement and r your county’s CLL.
The first step in the VA home loan process is to request your certificate of eligibility, which will show your remaining VA home loan entitlement.
For more information, visit https://www.blogs.va.gov/VAntage/70043/next-va-home-loan/
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