Veteran buyers will be faced with several changes in the coming months when applying for a VA loan. As of now, the Senate is reviewing a law that has already passed The House of Representatives to make two big changes to VA loans.
- The first change is to get rid of VA loan limits entirely so buyers do not have to come up with a down payment. Right now, a buyer can purchase up to $417,000 with no money down at all. If they go above this amount – they have to come up with some money for the down payment. Let’s say it is 25% of the difference of the sales price over $417,000. As an example, if a buyer purchases a $500,000 house then they need to come up with $20,750 ($500,000-$417,000=$83,000 x 25%).
- Under the new law – they would not need any money for the down payment if they purchased over $417,000. This will have a huge impact on the cash needed for high end veteran buyers.
- The second change is in regards to VA non – allowables. Right now there are certain items that the Veteran buyer cannot pay for such as termite, final inspection fees, notary fees, etc. This law would make VA non – allowables a thing of the past – so sellers would not have to worry about paying for items the buyer cannot pay for.
Veteran buyers need to inquire about these important changes before applying for a VA loan. With the final decision pending the final decision should have very positive impact on the real estate market and VA buyers. If you are looking to purchase a home under the VA loan program give us a call so we may refer you to one of our qualified mortgage lenders. Our mortgage lenders will answer all your questions and/or pre-qualify you for a VA loan under the new terms and conditions.