VA mortgage loans have made dramatic changes over the last few months. Here’s a general outline of the VA program and the most recent changes that have occurred.

The VA has increased their funding fee requirements. The funding fee for a first-time use VA loan will increase from 2.15% to 2.3%. For subsequent use VA loans, the loan’s fee will increase from 3.3% to 3.6% regardless if you have refinance or purchase loans. Last year, VA also instituted some stricter requirements 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 monthly. This 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. These refinance loans in all other cases are limited to 90% loan to value.

The biggest change to come for VA will be regarding purchase loan amounts. The VA will allow a purchase loan, no matter the amount. 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 New Mexico! No one cares more about your loan than we do!