2020 CHANGES IN VA LENDING

As we roll into the new year 2020, VA is rolling out some significant changes that impact Veteran’s with full entitlement.

  • VA is eliminating the loan amount cap that is currently in place and tied to conforming loan limits
  • No down payment will be required regardless of the purchase price or conforming loan limit

NOTE: Veteran’s with partial entitlement will still be required to make a down payment based on VA’s formula. Give me a call and I’m happy to do the necessary calculations for you.

For the first time in a number of years, VA is increasing the VA Funding Fee. See below for the updated Funding Fee for loans closed January 1, 2020 or after.

TYPE OF LOAN DOWN PAYMENT  1st TIME USE PERCENTAGE SUBSEQUENT USE PERCENTAGE
Purchase & Construction None
5% to < 10%
10% or more
2.30%
1.65%
1.40%
3.60%
1.65%
1.40%
Cash Out Refinance None 2.30% 3.60%
IRRLs None .50% .50%
Loan Assumptions None .50% .50%

As always, if you have any questions, give me a call at 360-459-1200!

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