President Trump has signed a veterans health bill into law that also abolishes the conforming loan limits on VA loans beginning Jan. 1, 2020 for veterans who do not have an outstanding loan guaranteed by the Department of Veterans Affairs.
The VA limit is based on Fannie Mae and Freddie Mac’s conforming loan limit, which is $484,350 in most counties. The Blue Water Navy Vietnam Veterans Act allows home buyers to borrow above this cap without any down payment. Additionally, the bill removes the cap on the amount the VA will guarantee, which is 25% of the conforming loan limit. This change allows the VA to guarantee 25% of the full loan amount for all loans.
The Congressional Budget Office estimates that VA would guarantee about $5 billion worth of additional loans a year under this provision.
The bill also temporarily raises fees on some VA home loans by 15-30 basis points.
The primary focus of the legislation extends disability compensation to Vietnam War-era veterans who were exposed to Agent Orange.
For more information, contact Curtis Milton
at 800-368-5242 x8597.