Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.

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A VA home loan is designed to provide Veterans, active-duty service members and their spouses with affordable financing options. A VA loan requires no down payment* and no mortgage insurance — huge benefits for any homebuyer! This year the VA has implemented new changes that are specifically designed to help Vietnam-era service members.

What Are the 2020 VA Loan Changes?

Updates to the VA loan program came in 2019 with the introduction of the Blue Water Navy Vietnam Veterans Act. Here are a few of the changes:

• No loan limits for approved VA home loans as of January 1, 2020, when a Veteran has full entitlement available.

• Increased VA funding fees for non-exempt borrowers.

• The same funding fee for all Military, National Guard and Reserves.

• Active-duty Purple Heart recipients are no longer required to pay VA funding fees!  

Blue Water Navy Vietnam Veterans Act Overview 

With the introduction of the Blue Water Navy Vietnam Veterans Act, comes aid to Veterans who served in the Vietnam War and are currently suffering from a medical condition that may be linked to Agent Orange (herbicide exposure). There are also changes that affect the home loan benefits these Veterans receive, including the removal of VA loan limits and the increase in the VA home loan funding fee.

Removal of VA Loan Limits

As of January 1, 2020, the VA will no longer have a VA loan limit in place, meaning a Veteran can buy a home at the higher end of the market without worrying about a loan limit. While this is beneficial to Veterans who need loans for higher amounts, it’s important to remember that a lender can still choose to deny a loan amount based on affordability.

Increase to the VA Funding Fee 

In 2020, the VA funding fee will increase from 2.15% to 2.30% for first-time homebuyers and from 3.30% to 3.60% for borrowers who have utilized benefits before. New rulings don’t require Purple Heart recipients to pay any funding fees on VA loans.

The Blue Water Navy Vietnam Veterans Act brings about exciting changes!  Buyers should go into the home financing process informed. A Loan Officer from Fairway Independent Mortgage Corporation is ready to assist you during the entire home loan process and help you determine how much home you can afford.  To get started, click here, or give us a call at (888) 301-3465.

*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. Copyright ©2020 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender.

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