March 2, 2016 – An effort is gaining ground to let veterans who use the federally backed, zero-down financing program to avoid worrying about loan caps. Right now, loans backed by the U.S. Department of Veterans Affairs (VA loans) are capped based on market area.
Update on Veterans Home Loans
Currently, the caps make it difficult for veterans to buy a home that costs more than $417,000. That amount goes far in many markets, but in some markets, it doesn’t even reach the median home price.
The House recently passed a bill that would eliminate loan caps for VA loans. Now it’s the Senate’s turn to act.
The National Association of Realtors® (NAR) played a role in getting the House to pass the bill, called the “Veterans Employment, Education, and Healthcare Improvement Act,” H.R. 3016. Sherri Meadows – 2014 president of Florida Realtors and current NAR vice president – recommended changes to the loan caps in testimony before a House VA subcommittee.
This is really good news, in the past the veteran would have to put down 20% of the anything financed over the maximum loan amount of $417,000. So for example if the purchase price was $517,000 they would be required to put $20,000 down payment to secure the loan. This could be a serious game change for the veteran in whether or they decide on using their VA entitlement for their next home purchase.
Nick & Cindy Davis are both veterans who served in the US Army and are here in the Tampa Bay Florida area. We are always just a click here or call to 813-300-7116 away.
Source: Robert Freedman, Realtor® Magazine © 2016 Florida Realtors®