New VA Home Loan Benefits

As part of the Blue Water Navy legislation, Congress authorized the following changes to the VA Home Loan benefit beginning on January 1, 2020 for ALL eligible Veterans:


Conforming Loan Limits

Veterans will have greater access when using their no-down payment home loan benefit.  Veterans seeking to obtain what are commonly referred to as “jumbo” loans, or Veterans living in higher-cost markets, will no longer be subject to the Federally-established conforming loan limit maximums.  After January 1, Veterans may obtain no-down payment VA-backed loans in all areas of the country, regardless of home prices.


VA Loan Funding Fee Change

At this time, there is a temporary change to the VA Funding Fee, which is a congressionally mandated fee associated with the VA Home Loan.  Veterans and Servicemembers will see a slight increase of 0.15 to 0.30% in their funding fee (currently for two years), while National Guard and Reserve members will see a slight decrease in their fee to align with the fee paid by ‘Regular Military’ borrowers (permanent).  Veterans with service-connected disabilities, some surviving spouses, and other potential borrowers are exempt from the VA loan funding fee and will not be impacted by this change.


Purple Heart

If you are an active duty Servicemember who has earned a Purple Heart, your funding fee can be waived if you close on your home while still serving on active duty.


Native American Direct Loan

The new law removes the loan limit of $80,000 for Veterans using their entitlement for a VA Native American Direct loan to build or purchase a home on Federal trust land.  Eliminating the loan limit enhances access to home loan benefits for Native American Veterans.


You can read more about the new VA home loan benefits at

Leave a Reply

Your email address will not be published. Required fields are marked *