December 24, 2019

New VA Loan Changes!

There’s some exciting news coming to VA loans!

Effective January 1, 2020, here's what will be changing for qualified military homebuyers:

  1. No down payment

Right now you can get a hundred percent financing on a VA loan, no money down, up to a certain dollar amount. After that dollar amount, you have to bring in 25 cents on every dollar after that limit as part of a down payment. After these changes on January 1, 2020, there will be no down payment required.

You can get a hundred percent financing beyond that dollar limit!

  1. Funding fee changes

The second change that's coming is related to the funding fee on VA loans.

If you have a service-related disability, you won’t have a funding fee; otherwise, the funding fee is going up by a certain percentage.

That funding fee is what funds the VA program, which is just an insurance program to guarantee the loans. It’s going to get a little more expensive on that funding fee for VA loans as a result.

The biggest impact is no down payment on the very big (“jumbo”) VA loans.

We have a lot of experience doing VA financing. If you have questions about VA loans, or if you're active duty or retired military, contact us today. We’d be glad to help.

Watch our video on this topic here.