VA mortgage loan programs have made some dramatic changes over the last few months. Indigo Mortgage Colorado wants to keep you informed of these changes so you can be prepared for them. Here’s a general outline of the most recent changed to the VA program.
First off, the VA has increased their funding fee requirements from 2.15% to 2.3%. For any VA loans after that, the loan fees will increase from 3.3% to 3.6% regardless if you have refinance or purchase loans. Stricter requirements were also implemented by the VA last year when a loan is refinanced. If the Veteran wants to do a 100% cash-out loan, the loan must improve the Veteran’s cash flow on a monthly basis. In this case, that means there is still 100% cash-out refinance, but the Veteran cannot get cash in hand; the cash-out must be used to pay down other debts. In all other instance, these refinance loans are limited to 90%.
The biggest change with a VA loan will be the amount purchased. Regardless of the amount, the VA will allow a purchase loan. This also requires zero down, which is a great benefit for Veterans.
This means there are no more down payment requirements, even if the borrower is looking into a jumbo loan. This will have a huge impact on VA borrowers going forward!
For further questions regarding your mortgage loan, or to get a new loan process started, reach out to the team at Indigo Mortgage Colorado! No one cares more about your loan than we do!