VA Home Loans
VA helps service members, veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, the VA provides a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
For VA housing loan purposes, the term "veteran" includes members of the National Guard, the Reserves, active duty service members, and certain categories of spouses. As part of the Blue Water Navy Vietnam Veterans Act of 2019, Congress authorized the following changes to the VA Home Loan benefit that began January 1, 2020 for ALL eligible veterans:
- 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 service members 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 service member who has earned a Purple Heart, your funding fee can be waived if you close on your home while still serving on active duty.
- 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, 2020, veterans may obtain no-down payment VA-backed loans in all areas of the country, regardless of home prices.
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.