There have been a few changes to VA loans in 2014. VA does not have cap on how much you can borrow to finance your home. There are however limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you.
The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, in our area the new limit for 2014 is $692,500. Any loans above the basic entitlement will require a down payment. VA still does not require a borrower to pay Private Mortgage Insurance (PMI) which is common with other loans with low down payments.
There have been no changes to the funding fee in 2014. It remains at 2.15% for first time use and 3.3% for subsequent use. Some service members may be exempt from the funding fee if they are receiving compensation for a service connected disability or have been determined to have a disability from service. Also exempt from the funding fee are surviving spouses of a veteran who died on active duty or from a service connected disability.
VA loans are one of the only zero down payment loan programs available and are a benefit earned for your service.
If you are VA eligible and looking for a new home in Northern Virginia in 2014 give me a call at 703-346-2213. A majority of our clients use VA loans to purchase a home and we can help put you in touch with great local lenders who specialize in VA loans.