VA loans have remained a popular option for military buyers in Temecula Riverside County. The program still offers up to 100% financing with many other great benefits. Below we look at the basic program requirements and recent changes for 2020.
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VA Mortgage Changes For 2020:
VA recently announced some key changes for this year. All these changes are a result of to the Blue Water Navy Vietnam Veterans Act of 2019, that went into effect on January 1, 2020. The biggest change is the removal of VA loan limits for eligible borrowers.
Under the new guidelines, “first-time use” VA loan buyers will have no cap on 100% VA loans. Before this, Veterans could only get VA loan up to the set limit for their county – $484,350 in 2019 for Riverside County & Temecula. Any loan that exceeded the conforming loan limit would require a down payment from the Veteran, not anymore.
There are also changes to VA funding fee structure. This is the one-time fee that is added to the Veterans loan and helps sustain the program for all. The funding fees will increase for most buyers for the next two years.
Veterans and eligible service members must pay an additional 0.15 to 0.30%, though National Guard and Reserve members will have their funding fee reduced now to the same level as other military borrowers. As in the past, most Veterans with service-related disabilities and some surviving spouses won’t pay a funding fee. However, Purple Heart recipients on active duty are now also exempt from the fee.
MORE: The latest funding fee chart can be found on the VA Loan Page.
VA Loan Advantages:
- 100% financing with no down payment required
- No loan amount limits for first-time users
- No monthly mortgage insurance or “PMI”
- Secure fix rate terms. VA loans have some of the lowest interest rates on the market today
- Reduced closing costs – VA mandates certain protections regarding buyers closing costs. The program also allows the home seller to pay the buyers customary closing costs, thus reducing the out of pocket expense from the buyer.
- Quick pre-approvals – Modern Lending can process your application and issue your pre-approval within minutes.
- Quick closings – VA loans can close in as little as two weeks!
Modern Lending is recognized as a leading VA mortgage provider in California. Please connect with us today to learn more about all your options.