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Blue Water Navy Vietnam Veterans Act of 2019

January 01, 2020 Announcements

Offer More Buying Power for Jumbo VA Borrowers!

Blue Water Navy Vietnam Veterans Act of 2019

  • Removal of Loan Amount Cap Requiring Down Payment
  • VA Funding Fee Update
  • Benefit Expansion for Purple Heart Recipients

Effective Immediately for Loans Closing on or after January 1, 2020

 

What’s Changing?

  • The Blue Water Navy Vietnam Veterans Act of 2019 expands the maximum guaranty amounts for purchase and cash-out loans, enabling eligible* jumbo borrowers to exceed published FHFA county loan limits without a down payment requirement!
  • The VA benefit enhancement now means eligible* Veteran jumbo borrowers may obtain no down payment VA-backed loans in all areas of the country for any home price.
  • Please note that loan amounts exceeding $1,000,000 with 100% LTV will be subject to additional due diligence review before approval.

*Subject to credit approval, requires full entitlement; for purchases and cash-out refinances only and not applicable for loan amounts <= $144,000. For IRRRLs, VA will continue to guaranty 25% of the loan amount without regard to the Veteran’s available entitlement and/or county loan limits.

Funding Fee Update

  • The table below includes the amended funding fee percentages for all Veterans (including Regular Military, Reserves, and National Guard) for loans closed on or after January 1, 2020, and before January 1, 2022.
  • Regular Military, Reserves and National Guard are now subject to the same funding fee %.
  • The Act increases the funding fee for Regular Military and decreases the fee in most cases for Reserves/National Guard.
  • Reminder – the funding fee may be included in the Loan Amount.
  • Veterans who were injured while in service are exempt from paying the VA funding fee if they receive disability compensation or have a disability rating of 10% or higher. Surviving spouses of veterans who died in the line of duty also qualify for a funding fee exemption

Waiver of VA Funding Fees for Purple Heart Recipients
A New and Significant Savings Opportunity!

The Act amends current VA regulations by adding a waiver of the VA Funding Fee for Veterans who are serving on active duty, and provide, on or before the date of loan closing, certificate or military orders of having been awarded the Purple Heart. 

 

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