VA Guidelines are Changing Jan 1, 2020 - Here's What You Need to Know

Dated: December 2 2019

Views: 463

The 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.

Blog author image

Andrew Iremonger

Andrew Iremonger started his Real Estate career shortly after leaving the United States Air Force in 2014. The qualities that the military instilled in him carried on in his work ethic. Just a few sho....

Latest Blog Posts

29 Things You MUST Know When Buying a Condo in Florida | Explained!

So maybe you have visited the beautiful Emerald Coast and you are thinking to yourself that I might want to buy a condo while I am out there. Seems like a pretty good investment. Well, these are

Read More

Exploring Farmers Market in Niceville Florida | Check out all the good stuff!

Want to see the Niceville Farmers Market? Come with me!Hi everybody, it is Andi G with the Emerald Group right here in the beautiful Fort Walton Beach, Florida. Today we are going to be taking a

Read More

Things you MUST know when Buying a Condo in Florida | Explained!

One of the most common questions I got asked from vacation renters who are renting a condo is “What it looks like to purchase a condo?”. Today I am going to give a live example, and I am

Read More

Living in the Emerald Coast [EVERYTHING YOU NEED TO KNOW]

So you are thinking about moving to the Emerald Coast, but you are not sure which area is best for you. Well in today’s video that is exactly what we are talking about. We are going to break

Read More