Buying homes with VA home loans is something every qualified veteran or military service member should consider. They offer lower-than-average interest rates, are easier to qualify for, and make getting into the home of your dreams a breeze. But as with all government-sponsored benefits, the details of the loan program can change from year to year. 2021 is no different and there are some pretty hefty changes being made to the VA loan program. Here’s what you need to know.
National Guard and Reserve Members Now Qualify
Under the old qualification requirements, National Guard and Reserve service members had to serve 90 consecutive days of active duty to qualify for VA home loans. If you served for years but never saw more than a month of active duty, you weren’t eligible for the loan program. As of 2021, National Guard and Reserve members who have at least 90 days of service under their belts, with at least 30 consecutive days of service on record, are eligible to apply for VA loans. Active-duty service is no longer a requirement.
Loan Maximums Are Increasing
Property prices tend to fluctuate and change with inflation and the VA often reviews loan limits to make sure their numbers reflect the current economy, cost of living, and housing market. The loan limits for 2021 are going up to make it easier for borrowers to qualify for the financing they need to buy move-in-ready homes. For stand-alone, single-family structures, the VA loan limit is increasing to $548,250 across most of the country. In areas where the cost of living and real estate prices is higher (New York, Hawaii, California), the limits are higher.
What Does This Mean for You?
Ultimately, these changes to VA home loans are in place to make it easier for qualified borrowers to buy homes without relying on traditional or conventional mortgages. You’re still able to finance the full purchase price of the house without having to use your hard-earned savings as a down payment on the property. Even better, you’re still able to avoid having to pay for private mortgage insurance if you finance the full asking price.
Ready to Apply?
If you’re considering using VA home loans to finance a new home purchase, now is the perfect time. Contact our team to learn more about your options or fill out an application online today. We’ll help you get into the home of your dreams whether you’re interested in a conventional mortgage or want to use your VA benefits.