Big changes for the VA loan programs in 2020

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VA loan limits are going away!

A big win for veterans. While the no down payment clause remains the loan limits have been removed, thus enabling veterans and service members to stay competitive with conventional offers. However, down payment/equity requirements still apply when using second-tier entitlement. But down payment/equity requirements still apply.

Changes to the funding fee

Now, National Guard and Reserve buyers shall pay the same funding fee as Regular Military buyers. But Purple Heart recipients on active duty will receive a funding fee exemption. Funding fees for veterans without a disability rating are going to be increased slightly for the next couple of years.

These changes take effect after January 1, 2020. While some veterans might want to close before the end of the year to avoid higher funding fees. Others might want to close in 2020 to avoid making a down payment. You need to talk to your VA loan lender to decide the best course of action.

Big changes for the VA loan programs in 2020 was last modified: January 17th, 2020 by masouds

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