VA homebuyers no longer must worry about maximum loan limits. The VA loan limit has been eliminated, which gives VA loans much more wiggle room regarding the amount veteran homebuyers can borrow with 0% down.
VA LOAN LIMIT
Every year, the VA loan limit amounts are updated to reflect the current home buying market. With home prices increasing in California and Texas, the VA has decided to eliminate the loan limit in 2020 to avoid veterans going over the loan limit. Now, VA-eligible buyers can take out what would usually be considered a “jumbo loan” without putting a down payment towards their purchase. Before the loan limit was eliminated, eligible Veterans had to put an additional 25% down for the amount exceeded, and this is no longer the case.
Buyers no longer have to worry about not having enough money to cover the down payment and loan limit requirement for a VA loan. VA applicants can also have most of their closing costs covered by the lender as well!
VA LOAN REQUIREMENTS
As mentioned before, Veterans must still meet all eligibility requirements for a VA loan, including credit scores, employment history, and debt-to-income ratios. If the potential borrower already has a VA loan, or only partial entitlement remaining, they must abide by the county loan limit.
While the loan limits have been eliminated, the funding fees for VA loans has gone up. The good thing about these fees is that they are one-time fees that are typically financed into the loan. These fees are for either “first-use” or “subsequent-use” VA loan applicants. If you are a first-use VA applicant, the funding fee is 2.3%, and if you are a subsequent-use VA applicant, the funding fee is 3.6%.
CONTACT OUR TEAM
JVM Lending loves to work with VA borrowers and is highly adept at closing VA loans. If you are a veteran and are interested in getting pre-approved for a VA loan, contact our team today to get started! Our Client Advisors are VA experts and are available 7 days week for any questions by phone at (855) 855-4491 or by email at jvmteam@jvmlending.com.
