VA Guidelines are changing

he VA loan is changing come January 1st, 2020 and we wanted

to discuss what is changing, exactly.

The VA funding fee on your first use is going from 2.15% to 2.30%.

This percentage is from the purchase price. Let’s say the home you

Are buying is $200,000. At the new Funding Fee of 2.3%, your total

Loan would be $204,600. This is not a fee that you are required to

Pay as part of any sort of closing cost, it is most commonly put into

The loan amount. Which, in turn, won’t cost you anything out of

Pocket but it does raise the monthly payment ever so slightly.

Subsequent use of your VA Loan used to carry a 3.3% funding fee

But that will now be increasing to 3.6% as of Jan 1st, 2020.

There's no limit, even though the non-conforming limit for 2020

Will be $510,400 up from the $484,350 that it used to be. When we

Say that there is no limit, we mean that you could purchase a

New home above that limit without having to pay a down payment.

Previously, you would have to pay a 25% down payment on the

Dollar amount above the non-conforming limit. Lucky for our

Veterans, that is being taken away! For those Veterans fortunate

Enough to purchase a higher priced home will be able to keep

Their money in their pocket!

For those that are using an investment strategy that you know,

if you've done a Buyers Consult with me with a VA loan before

I've talked about where you purchase your first home call it at a

Hundred and fifty or $200,000. Then you wait a couple of years

and you buy another home and make sure you're under that

$510,400 still so you don't have that down payment and then

you can refinance that first one out of the VA loan.

It's very wonky right now. We're not sure how that's going

to play out yet. What it is sounding like is it they may not be

allowing that on the same level. We're still trying to get clarification.

We will probably have to do another video and blog post or some

sort of post on the channel at that at some point because we're not

really sure if that's how things are going to work in January.