Are you a veteran or active duty and qualify for your certificate of eligibility to purchase a new home?
If so, the sky’s the limit! January 1st, 2020 the VA has lifted loan limits so that now you can borrow 100% up to whatever you financially qualify for. What was once a limit of $484,350.00 is now one, two, three million dollars or more.
Whatever you’re income can justify, the VA has your back.
In 2019 the $484,350.00 loan limit bought you plenty of home, even today in most areas. But the high-cost areas, such as California, Florida, New York and others, capped you from purchasing your dream home without coming up with the 25% down payment on the purchase price above the 2019 limit. Those days are long gone.
- Resource: FROM RANKS TO RICHES – A Veteran’s Home Buying Journey: How Your VA Home Loan Helps You: Avoid the Renting Trap, Buy a Home, and Start Your Path to Financial Freedom
When I say “whatever you can financially qualify for,” that means the income guidelines are still in place. Also, don’t expect to purchase that four million dollar beach house with your Certificate Of Eligibility and plan to move in with three generations of your family and expect to pay the mortgage. What this new guideline offers is buying power for duel income households that earn over six figures, successful business owners or professionals that earn a six or seven-figure income; you can now Refinance, Cash Out, or Purchase any home without a loan limit.
The timing couldn’t be better with rates at the lowest they’ve been since 2016. What’s also serendipitous is the higher the loan amount the lower the interest rate. How awesome is that? I have personally priced VA loans over $700,000.00, with a 30 year fixed interest rate that was less than a standard-conforming conventional loan.
I won’t go into detail of the income ratios, credit, and residual income limits, as well as how to have multiple VA loans, and all the other important and major benefits you should know before your next mortgage. I strongly recommend getting this easy to read book published by VA loan guru Breton Macdonald www.bretonmacdonald.com
Breton’s book is easy to read and it’s FREE. Just click on the above link.
As for me, I have 18 years of mortgage lending experience and have closed well over three thousand conventional, VA and FHA loan transactions. This book is the real deal.
In closing, as the housing market prepares to heat up come springtime, and if your an active duty or veteran, now’s the time to prepare for that dream home you may have second-guessed in years past due to VA loan limits. Take advantage of all that you’ve earned serving our country, you deserve it.
- Resource: Making the Most of Your Veterans Affairs (VA) Home Loan Benefits : An Active Duty Service Member and Veteran’s Guide to Home Ownership
From 2001-2005 Hampton was a part of the refi boom of the early 2000’s, closing an average of 50 mortgage loans monthly leading him to a member of the Ditech.com Presidents Club. This tempo of loan originations empowered and fueled his mortgage knowledge early on.
In 2005 Hampton joined Lenox Financial Mortgage in Costa Mesa CA. Shortly thereafter he became sales manager of the internet loan originations division and grew that department to 33 mortgage loan officers with a total monthly funding of over twenty million in gross revenue. His role in management broadened his knowledge of the mortgage industry from compliance, to secondary markets, to customer service retail and wholesale. His 13-year tenure at Lenox Financial Mortgage was instrumental to his mortgage lending prowess during a kaleidoscopic financial era.
Currently Paul Hampton is Vice President for The Money Branch, The Temecula Branch of Geneva Financial specializing in VA and government loans, as well as FHA, FNMA, FHLMC, USDA, and Non-QM.