No more VA Loan Limits in January 2020!

HR 299 is a new VA Bill recently signed by the president that makes some big changes to VA financing. If you’re thinking about buying a house and you’re an eligible VA mortgage applicant. Here are some things you ought to consider..

VA financing allows you to purchase a house with no money down. Presently this is permitted up to the maximum conforming loan limit in the area in which the county is located. Technically the VA does not have a limit, but it does if you exceed the maximum high balance loan limit in the area in which the property is located and then you have to come up with a 25% coverage ratio meaning you have to put in your own cash to purchase the property when it exceeds the maximum high balance loan limit.

This new bill that starts for all qualified VA applicants in January 2020 removes that high balance loan limit cap for 100% financing opening the door for more eligible veterans and their families to pursue homeownership.

The VA loan is particularly attractive because of the following things

  • Interest rates are generally lower when stacked up against FHA and or conventional mortgages
  • The loan is guaranteed by the Department of Veterans Affairs making the loan less risky to the lender allowing the lender to push the ratio in terms of qualifying ability. Note this is on a case-by-case basis with each lender
  • The loan allows for no money down at all. Couple that with a seller credit for closing costs and you can purchase a primary home without putting in any of your own funds
  • Loan also allows for no monthly mortgage insurance which is incredibly huge $300- $400 a month of PMI for example when stacked up against an FHA or conventional loan can really improve borrowing power.

If you’re thinking about VA financing or looking to get a jump start on your eligibility prior to January talk to a qualified lender now who can best position you to be pre-approved in January.

Get a no cost Va Rate Quote now!

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

5 practical ways to increase your purchasing power when buying a home

How to avoid a contingent offer to buy a new home without selling your current home first

Buying a new home while still owning your current home can be a challenging process,…

why being a picky home buyer could be an issue

Why being choosy as home buyer could be problematic

You’ve decided to buy a home, you’ve gotten preapproved with a lender, your file has…

can you buy a house with less than 600 credit score?

Can you buy a house with a less than 600 credit score?

For families were looking to buy a home one of the biggest setbacks people have…

Should you buy a house or wait for the market to improve?

5 signs you should wait to buy a house

If you’re thinking about buying a home, but you’re just not sure. You’re probably better…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!