To some extent, veterans and their families have relied on VA loans for more than 75 years. Its mission has been to help the people who work and sacrifice to protect the United States from harm. It helps to make sure they have the pleasure of owning a house. To date, with upwards of 8 million loans being issued out over the last two decades alone, it has served well. Thanks to a refreshed look and a revamping of old VA loan caps and down payment options, this number will most likely continue to rise this year. W e are thrilled to be able to help spread the news in the coming year on all the big improvements to VA home loans.
In the past, it would have been appropriate to provide a down payment to anyone who wished to buy above the ‘county’s limits’. It’s odd because the software is planned to be $0 down. The county or state can not enforce the limitations that enable vets to make a down payment for the latest upgrade. This is because there is a new country-wide “top loan cap” that goes up to $1,500,000. For veterans who live in more expensive housing market locations, it is very beneficial.
For even younger veterans, another major advantage is that the conditions for having a loan through the VA have also decreased in 2020.
It is possible to pay VA Financing Costs upfront or you might have the option to roll the expense into the loan itself. The exact breakdown can be seen, but what it amounts to is:
- 2.3% of the loan sum in interest would need to be charged by First Use/Zero Down Loans. In 2019, this is up from 2.15 percent. (Your fee average would be closer to 1.65 percent if you can have a down payment of 5-9 percent. If you pay 10 percent or more as a down payment, your payments will be as little as 1.4 percent.)
- Loans for subsequent use are now 3.6 percent. This rose marginally from 2019 and 3.3 percent as well.
- On both first-time and subsequent use, interest rate reduction loans are 0.5 percent.
- The same as those for a purchase loan are cash-out refinance loans.
Fee levels for two years are in place. Your loan fee level will be reduced to the 2019 rate in 2022. The fees will decrease further on September 30th, 2029. The aim is to make it more accessible in the coming years for veterans and active duty servicemen and women to have a home.
Depending on your current situation, the exemption from these amendments and how they can affect you. For example, you would still need to comply with county loan restrictions if you already have a loan that you are still paying for. Paying off the existing debt or selling the property is the only way to prevent this. If you owe cash for a former home, you might still be subject to your current home loan’s county loan cap.
To help you determine whether you are willing to buy a home using VA home loans, you can request a COE. Most individuals, however, want to have assistance with the procedure. This helps them to gain an understanding of new rules, laws, and more. And that’s where we come in. We are here to help if you are interested in making 2020 the year you claim the American Dream of homeownership for yourself.
We understand at First Savings Mortgage that finding out what you can and can not do with your VA loan is not always easy. You can contact us if you are planning to make this year your year. Our loan officers will be pleased to guide you with their guidance.