Photo Credit: Official White House Photo by Shealah Craighead (Photo is from President Trump meeting WW2 Veterans at the 75thCommemoration of D-Day at the Normandy American Cemetery on June 6th, 2019)
The Department of Veterans Affairs, often referred to in short as “the VA”, will now be able to back loans that exceed the previous loan limit. According to the White house Press Team, H.R. 299 was signed by the President on Tuesday, June 25, 2019. The law called the “Blue Water Navy Vietnam Act” now allows homebuyers to borrow above the 2019 limit of $484,350 for most counties without any down payment. The bill had been approved unanimously by the Senate earlier this month, but President Trump’s signature now makes the bill official.
Reacting to the news, Michael Mesa, CMPS, Branch Manager a& Loan Officer NMLS # 1464064 said, “This is great news. I expect by the end of this year or early next year, for the VA Loan to be the #1 Mortgage loan in the United States.”
Although earlier drafts of the bill would have raised loan fees for Veterans, the signed bill does not. National Association of Realtors, President John Smaby said the association teamed with other housing industry trade groups to ensure veteran benefits would be extended without increasing VA loan fees. “Realtors support efforts to boost veteran participation in this program, but we also believe VA loan guarantee fees should be based on the risk of the loan made, not the costs of other VA programs or benefits,” Smaby said. “As we aim to ensure our nation’s veterans have every possible opportunity to achieve the American Dream of homeownership, the National Association of Realtors has remained a strong supporter of the VA home loan guaranty program,” said Smaby. “This vital tool encourages private lenders to offer favorable home loan terms to qualified veterans and provides a much-needed resource to those who have sacrificed so much for this country.”
President Trump and lawmakers not only eliminated the cap, but they also required the Department of Veterans Affairs to include Blue Water Navy veterans under the presumption of service connection for certain Agent Orange connected medical conditions. The fight for Veterans to receive health care related to Agent Orange exposure has been going on for decades. Military.com said the bill will “fast-track disability compensation” for as many as 90,000 affected former service members.
These changes to the VA loan will take some time for the information to make its way through the industry. For up to the minute updates, connect with someone from our VA the Fairway team by clicking HERE.