Loan Limits Removed From VA Loans

HISTORY IS MADE FOR VA HOME BUYERS

July 2019 is a month for the history books. Today Realtors and veterans everywhere are celebrating as the Blue Water Navy Vietnam Veterans Act has just been signed into law. H.R. 299, which eliminates the cap on home loans issued by the Department of Veterans Affairs, is a bill benefiting veterans seeking to make home purchases. Before being signed, it was first unanimously passed by the Senate (earlier this month) after a federal court ruled the VA is required to provide health coverage to veterans exposed to the chemical known as “agent orange” during the Vietnam War. Thanks to the successful lobbying efforts by the National Association of Realtors (NAR) Realtors® were able to secure a victory in the bill by limiting proposed VA home loan fee increases.

A LITTLE HISTORY

The VA Home Loan Guaranty Program was established in 1944. Since then, millions of American veterans have been able to receive affordable mortgages and other home buying assistance. An amazing resource for veterans, the VA Home Loan was able to help many Vets and service members obtain homes, but it did have its limits. Like other government backed loans, VA loans had a limit on how much a borrower could spend with the loan.

VA LOAN LIMIT CHANGES

The bill, H.R. 299, enables homebuyers using a VA loan to borrow above the current 2019 conforming loan limits of set with each county without a down payment.

Changes brought on by the bill are set to take effect on or after January 1, 2020. However, guidance for lenders will be available earlier on the VA home loan circular page of its website.

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