No more VA Loan Limits
Starting in 2020, there will no be Loan-Limit Caps. Veterans may be eligible to buy more expensive homes and continue having the benefit of no down payment. Having the current low-interest rates and the no VA caps 2020 will be a great year for veterans and active military members to purchase their primary residence.
The military members on active duty and the veterans will still have to go to the process of qualifying for a loan to verify that they will be able to afford the property that they are purchasing.
These are great news for Veterans applying for a VA loan, they will be able to buy more expensive homes with the benefit of a VA loan.
Previously VA loans have been capped at different amounts in different parts of the country. In areas where high-priced the cap was higher than in places where the houses were less expensive.
Under the new rules, vets can get any loan amount via VA that can independently qualify to receive, though banks can still put in some restrictions to protect themselves against defaults. For example, some lenders may require higher credit scores or debt-to-income ratios in qualifying for the loans. The loans likely apply only to a borrower’s primary residence too.