Limits on Veterans Affairs home loans are officially a thing of the past thanks to the Blue Water Navy Vietnam Veterans Act, which went into effect on Jan. 1.
Prior to the new rules, Veterans with full VA loan entitlement who exceeded loan limits were required to pay a down payment. It was calculated by taking the difference between the limit and the cost of the home. A quarter of that amount was paid by the borrower.
With the new rules, more Veterans can purchase homes without having to worry about a down payment. The new rules are also conducive to more favorable borrowing terms.
The VA loan is powerful because of the impact it has on so many of our deserving military servicemembers. In fact, the majority of VA-loan holders do not have to make a down payment to get into a home.
If you’re thinking about purchasing a home in Oahu, please do not hesitate to contact us to learn more about the changes to the VA loan program. We can answer your questions and help you maximize your buying potential.