• Michelle Plunkett

NEW & IMPROVED VA HOME LOAN PROGRAM (part 1)


In 1944, a VA home loan program was created as part of the GI Bill of Rights. Thanks to the “Blue Water Act” passed in 2019, substantial changes to this program became effective January 1, 2020 benefiting many of those who serve, or have served, in the US military. The surprising thing is that even thought this newly improved VA Home Loan Program has been if effect for some time, many of our well-deserving veterans do not seem to know much about it. We’ve also found that many real estate professionals are also unaware of these improvements and the impact on our families that sacrifice the most.

Here, we will put you to be in the know. Let’s take a look at four benefits that go a long way in making this program powerful. Then, stay tuned for our next post which will focus on four big but common misconceptions surrounding this program.

Benefit 1

One of the biggest updates to this program results in allowing military home buyers to purchase homes in high cost areas, like the South Bay, by removing the previous loan amount limits. There are now no maximum loan amounts and no ties to Freddie Mac loan limits. Qualifying military home buyers can obtain jumbo loans as long as they otherwise qualify based on debt to income ratios.


Benefit 2

VA financing can can be achieved with a ZERO down payment! Even though this benefit may not surprise you because it has been around for some time, we are highlighting it today so that you can focus on the opportunity that this creates for those of you that currently own a home! The ability to put zero down may allow you to buy your new house before selling your current one. Basically, your timing is under your control which is a big benefit in this competitive market as it allows you to make offers on new homes without being contingent on the sale of your current home.


As an added bonus on this point, no Private Mortgage Insurance, “PMI,” is required with this program. Typically, other low down loan programs will require PMI as a safety net for lenders in case borrowers default.


Benefit 3

Rates have been incredible these past several years. However, the VA Home Loan Program offers preferred rates that are often even lower than those obtained with conventional financing! In today's environment of historically low interest rates, this benefit creates additional purchasing power to you with the lowest of low rates.

Benefit 4

The final benefit that we would like to bring to your attention is that this program eases the credit requirements for your mortgage qualification. This helps those with imperfect credit histories or perhaps those with shorter credit histories. It is important to connect with a good lender that is familiar and successful with this program and we can refer you to a great mortgage broker that has completed several of these loans very successfully!


Contact Team Plunkett to discuss how this impacts you and your family!

Note that while we are not mortgage brokers ourselves, our goal is to make you aware of these powerful benefits so that you have greater opportunity and flexibility when buying your next home or even refinancing your current mortgage. Contact us for a lender referral to help you through this process in detail and get you qualified you for your new mortgage. Once you are pre-approved, we can help you find your next home!


Plan your next move now with Team Plunkett!



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