A bill that eliminates VA loan cap signed into law
President Donald Trump signed the bill into law last Tuesday night, June 25th that eliminates VA loan cap. Following this, the Department of Veterans Affairs can now accept loans exceeding the loan limit which is $484,350 for most counties. This was allowed by the Blue Water Navy Vietnam Veterans Act without any down payment. The bill was approved around this month and the President of the United States of America officially signed it last Tuesday.
According to military.com, the bill was said to fast-track disability compensation for former service members and it was long-desired for veterans to receive health care benefits especially for diseases related to Agent Orange exposure. The cost of the benefits will be financed by increasing the VA loan fees from 0.35% to 0.5% for non-disabled veterans.
The National Association of Realtors or NAR was against the increase of loan fees, and the lawmakers chose to increase the loan cap to raise funds to support the benefits.
John Smaby, the National Association of Realtors president along with other trade groups make sure veterans benefits will be extended even without increasing the loan fees. "Realtors support efforts to boost veteran participation in this program, but we also believe VA loan guarantee fees should be based on the risk of the loan made, not the costs of other VA programs or benefits," Smaby said.
He added, "As we aim to ensure our nation's veterans have every possible opportunity to achieve the American Dream of homeownership, the National Association of Realtors has remained a strong supporter of the VA home loan guaranty program. This vital tool encourages private lenders to offer favorable home loan terms to qualified veterans and provides a much-needed resource to those who have sacrificed so much for this country."
The Veteran Affairs Loan or the VA Loan has helped veterans in homeownership as the loan can be acquired with no down payment. Up to this day, the homeownership of veterans has continued to increase.