Last month, President Donald Trump signed a bill into law that allows the Department of Veterans Affairs to back loans that exceed the conforming loan limit, enabling Kentucky VA home buyers to borrow above the $484,350 limit set for most counties, without any down payment. A VA spokesperson clarified the rule and outlined other changes that will go into effect as a result of the bill.
Last month, President Donald Trump signed a bill into law that allows the Department of Veterans Affairs to back loans that exceed the conforming loan limit.
The bill, H.R. 299, enables home buyers using a VA loan to borrow above the 2019 limit of $484,350 for most counties, without any down payment.
A VA spokesperson told HousingWire that the loan limit will be lifted for loans that are guaranteed or appraised on or after January 1, 2020, and that guidance for lenders would be coming ahead of this date, published on the VA home loan circular page of its website.
The VA also clarified other changes that will go into effect as a result of the bill.
In addition to alleviating limits for veterans looking to purchase a home, H.R. 299 temporarily increase rates for certain loans by 0.15-0.30%, the VA said.
The slight bump in loan fees is intended to help finance health care costs for veterans who are suffering the effects of Agent Orange exposure as a result of their service.
Additional changes to the VA’s loan guaranty program include the elimination of funding fee differences for borrowers who are veterans versus those who are members of the Reserve.
It also removes the loan limit for the Native American Direct Loan Program, exempts Purple Heart recipients from paying loan fees, and authorizes VA-designated appraisers to rely on third parties for appraisal-related information.
The bill’s passage comes after years of lobbying on behalf of numerous trade groups, including the National Association of Realtors, which teamed with other housing industry trade groups to ensure veterans’ health care benefits would be extended without a significant increase to VA loan fees.
Now that the bill has passed, it is expected to “fast-track” disability compensation for as many as 90,000 affected former service members, according to military.com.
Kentucky VA Home Purchase Loan Guidelines with lenders
- Option for no down payment, zero down home loan
- No monthly mortgage insurance premium
- No credit score minimum but VA lenders will institute credit overlays for minimum scores with most being 620 middle score of your three fico scores from experian, transunion, and equifax. Some VA lenders we work will go down to 580 middle score of yoru three fico scores. Very few if any will go below this even though on paper VA states "no minimum credit score"
- No bankruptcies or foreclosure in the last two years
- Rental History not required with an Approved Eligible thru DU
- You can use your Kentucky VA loan Certificate of Eligibility more than once and have two VA loans out at the same time in some cases.
- Seller or lender may contribute to veteran’s closing costs
- Termite report required on all VA loans
- No closing costs option available
- Close in as little as 30 days
- Free Mortgage Approvals for Kentucky Veterans and Active Duty soldiers
Joel Lobb
Senior Loan Officer
Senior Loan Officer
(NMLS#57916)
phone: (502) 905-3708
Fax: (502) 327-9119
Company ID #1364 | MB73346
