With the new year comes some positive changes for VA home loans. Starting in 2020, veterans and active military will enjoy additional benefits available to them with the initiation of the Blue Water Navy Vietnam Veterans Act of 2019.
Thanks to this new act, PrimeLending’s VA borrowers can now enjoy:
- No down payment on any loan amount
- No lender fees*
- No private mortgage insurance
- No Freddie Mac limits for VA clients with full entitlement
- More beneficial terms for larger VA loans
Let’s drill down on that a bit…
One of the most beneficial changes will affect how much down payment VA borrowers will have to pay beginning on January 2, 2020. Now it is 0% down no matter the loan amount. Previously, VA borrowers with jumbo loans had to pay 25% of any loan amount over conforming loan limits.
In addition, the VA is allowing a 25% maximum guaranty on all VA loans. Previously, only $144,000 of each loan was eligible for this benefit. This guaranty makes it easier to qualify for larger loans and in many cases allows lenders to provide better terms and pricing for VA loans.
Loans that qualify for these improved benefits include purchase, construction and cash-out refinance. So whether you already have a mortgage or are thinking about buying a home, your benefits may be better than ever before.
What about refinance? Basically, if you have a VA loan that was originated before this act went into place, you may be able to qualify for greater benefits with a refinance, and with rates as low as they are right now, it’s worth checking into.
Along with the loan limit and jumbo down payment changes, PrimeLending still offers no down payment, no lender fees* and no private mortgage insurance on all VA loans for qualified home buyers. If you want more details on all of the home loan options and benefits for VAs, contact your PrimeLending home loan expert.
*All lender closing costs such as origination, processing, underwriting, and closing will be waived, borrower is still responsible for third party fees such as VA funding fee, title, and appraisal etc. Down payment waiver is based on VA eligibility. This offer is valid until 12/31/2020. Savings only applies to direct originations made by PrimeLending for first mortgage purchase or refinance transactions, and is not available on loans obtained through mortgage brokers. Only one offer per loan transaction is available, and savings cannot be combined with any other offer. Savings will reflect on Closing Disclosure at closing. Borrower must lock their loan before 12/31/2020.