Loan Limits Be-Gone: What’s New in 2020 for Veterans
December 13, 2019
The Blue Water Navy Vietnam Veterans Act of 2019 will become effective as of January 1, 2020. What does this mean for Veterans looking to purchase a home? The new legislation was implemented to aid veterans filing medical claims who may have health issues related to Agent Orange (herbicide exposure). More specifically if refers to a Veteran who, “during active military, naval, or air service, served offshore of the Republic of Vietnam during the period beginning on January 9, 1962, and ending on May 7, 1975, shall be considered to have been incurred in or aggravated by such service, notwithstanding that there is no record of evidence of such disease during the period of such service.”
The new legislation affects VA home loan benefits as of January 2020 by removing the loan limit on VA mortgages and increases the VA Loan Funding Fee for non-exempt borrowers. Loan limits, however, will still apply for Veterans who currently have more than one active VA loan, or if only partial entitlement is available, or for those who have defaulted on a previous loan. Another change made by the new regulation now allows for anyone who currently serves on active duty and were awarded the Purple Heart are also exempt from the funding fee.
- No loan limits on VA mortgages as of January 1, 2020.
- An increase in the VA loan funding fee for all non-exempt borrowers.
- Purple Heart recipients are now exempt from paying the VA loan funding fee
For more information about medical claims, qualifications for disability benefits relating to Agent Orange and the Blue Water Navy Vietnam Veterans Act of 2019, visit https://www.va.gov/disability/eligibility/hazardous-materials-exposure/agent-orange/navy-coast-guard-ships-vietnam/
Categories: VA Home Loans