Recent VA Loan Changes: Eligibility and Fee Alterations
In part one of this two-part blog, we went over some of the basics on recent changes to the VA loan program that makes it both more accessible and more beneficial for those who qualify. Backed by the US Department of Veteran’s Affairs and bringing benefits like no down payments and fantastic mortgage rates, VA loans are meant for military service members, veterans and their families to repay them for their service to our country.
At Altius Mortgage and our partners at Mortgage Ogden, our wide range of loan programs includes robust VA loans and mortgage rates for any of our clients who qualify here. Based on the 2019 Blue Water Navy Vietnam Veteran’s Act, which went into effect in 2020, many of our military veterans and spouses have seen significant positive changes to their ability to borrow and the amounts they can obtain. Here are some further details on how this has happened.
Changing Eligibility
In addition to eliminating the conforming loan limit in many areas for veterans, as we went over in part one, the act above also increases access to VA loans for two groups of veterans: Those who have been awarded a Purple Heart and any Native American service member. For the former group, funding fees will be waived entirely for those who close on their home while on active duty; for the latter group, the $30,000 cap on loans for building or purchasing a home on federal trust land has been lifted.
This simply makes it easier for those in this position to obtain loan funds easily, which was the primary goal of this section of the act.
Fees for Funding
Speaking of funding fees, there have been some small changes made here as well. Specifically, veterans and active service members will pay a slightly increased funding fee of 0.30 percent, up from 0.15 percent. However, National Guard and Guard Reserve members will now see their fees decreased to match this same 0.30 percent figure that active service members pay. This change is meant to be temporary.
Now, several groups of veterans were already exempt from funding fees, including those with service-related disabilities and surviving spouses. In these cases, this exemption remains.
Application Process Stays Unchanged
One area that saw very little change due to the act we discussed above is the application process for VA loans, which remains identical. Veterans who wish to use their VA benefits to purchase a home must still obtain a Certificate of Eligibility, plus potentially additional documents that your loan officer will be happy to detail for you.
For more on recent changes to the VA loan program and how they might impact you, or to learn about any of our mortgage rates or home loan services, speak to the staff at Altius Mortgage today.
