THE MORTGAGE BROTHERS SHOW
New VA Loan — No Loan Limits
The VA department has made some exciting changes effective January 1st, 2020. There will be no VA loan limits for borrowers who purchase a home, subject to them having no outstanding used entitlement. This is an incredible opportunity for borrowers who are looking for larger home values! So, does that mean a Veteran can put 0% down on a $1 million home? Answer is yes, subject to the entitlement eligibility and standard underwriting approval.
You can learn more about the details of this below.
*The following transcript has been edited for clarity.
Eddie — I’m Eddie Knoell.
Tom — And I’m Tom Knoell.
Eddie — We’re the Mortgage Brothers everyone, and welcome to our show, and today, exciting news that we want to just talk about, it’s the VA loan and the actual limits that you can borrow. There’s no longer any limits. Okay. If you’ve been a veteran out there and you’ve borrowed money before using your VA eligibility, you know what we’re talking about, that there’s always been a limit the bank would say that you were eligible for was 0% down.
Tom — Hold on here, you’re telling me there are no limits?
Eddie — No limits.
Tom — Can’t be. So zero limits? I can buy a $700,000 house if I’m a VA, on a purchase, no limits?
Eddie — That’s right. Everyone’s out there thinking-
Tom — Yeah, what’s the catch?
Eddie — -the VA isn’t writing checks, the banks aren’t writing these checks either, they’re not giving you the money without first verifying that you have the ability to afford it. Okay.
Tom — Right.
Eddie — You still have to have credit, you still have to be able to afford it with your income, so all those parameters, they are still going to be in place, but the point is this, that usually VA would say in Maricopa County, or in the state of Arizona for that matter, it would be a limit, and it would have a limit that would be the same limit that conventional financing would have. And they would say anything above that number you would have to put money down. But to your point, yes, you could buy a $700,000 house now.
Tom — How about a $2 million house?
Eddie — Even a $2 million house is technically eligible, with 0% down.
Tom — That’s the real deal. You and I were talking about, we were trying to figure, what is the catch? It’s like there really, there is no catch. You have the underwriter who still needs to review the file, but as long as you have decent credit, you’ve got your debt to income in check, you can literally buy a $2 million house, zero down.
Eddie — Yeah. This is just awesome news for anyone who’s in the jumbo market, jumbo financing is anything above $510,000. If you’re getting a loan amount for $510 or above, and you’re a veteran, this is really big, big exciting news.
Tom — And you need to brag to all your friends that you’re going to get basically a jumbo loan with 0% down. Now the only thing you do need besides having good credit and the income is what? That certificate of eligibility has to be untapped. You have to have full entitlement. It could have been tapped, but as long as it’s repaid back and you’ve got that full entitlement amount, no problem.
Eddie — Exactly.
Tom — Literally, and I was also thinking it’s just like having no curfew, you know, you lived your entire young adult life having a curfew, and then all of a sudden your parents are like, “Hey, guess what? There’s no curfew.” Literally, there’s no limits.
Eddie — “You can stay up past 11.”
Tom — You can stay up past 11, you can buy a $2 million dollar house. Really, really important for us to do this podcast today. We’re very excited about it.
Eddie — Yeah, and one note I would add is that this is for purchases. On refinances there’s a lot of little details that will determine what your eligibility will be. VA loans do allow, you can refinance a million dollar VA loan, using a VA, but there’s a lot of limitations, okay. Give us a call, contact your loan officer about those details.
Tom — Right.
Eddie — Again, what we’re describing is 0% down for purchases.
Tom — Up to whatever.
Eddie — Unlimited.
Tom — Unlimited, whatever you want. Just make sure that credit, the income is strong. All right, what else is there to brag about or talk about?
Eddie — Nothing else. I think that that’s just the short of it right there.
Tom — Okay.
Eddie — We got right to it, and I hope everyone just calls us, reaches out, or emails us with any questions they have.
Tom — We’re here for you. All right, well thank you folks.
Eddie — All right, time to go home.
Thanks for listening to the Mortgage Brothers Show. Please let us know if you have any questions you’d like us to answer on this podcast. You can email us your questions, there’s email@example.com, or yours truly at firstname.lastname@example.org. Be sure to ask us for a free quote on your next mortgage. Tom and I will personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS number 210917, and 16186695 equal housing lender.