New VA Loan Limits in Riverside County
On the hunt for the perfect home in Riverside County? You’re probably wondering how you’ll be able to get the home you want in one of the top 5 most populated counties in California. Luckily, VA loans make buying a home in Riverside County easy.
If you’re a Veteran will full VA loan entitlement, your search is about to get even easier. Upcoming changes to the VA loan limits in Riverside County are set to take effect on January 1, 2020. The changes should help Veterans qualify for high-value homes in Riverside County, including Temecula.
See how VA loan limits are changing in 2020 and how you can take advantage of them to secure your dream home in Riverside County.
Upcoming Changes to VA Loan Limits
One of the best parts of the VA loan program is the chance to get a home loan with no down payment. Since the VA program allows you to fund 100% of the purchase price of your home with your loan if you qualify, you’re not spending thousands of dollars putting money down on your home purchase. Unfortunately, VA loan limits capped the total amount you could borrow based on conforming loan limits in the past. These limits made it more difficult for Veterans who wanted to buy more expensive homes in high-cost areas of Riverside County.
New changes to the rules surrounding VA loan limits in Riverside County could help Veterans like you get a zero-down mortgage, even on high-value homes. As of January 1, 2020, VA loan limits in Riverside County are being eliminated.
What Does the Elimination of Loan Limits Mean for You?
With the expiration of the VA loan limit in Riverside County for 2019, Veterans with full VA loan entitlement can receive 100% loan financing for their home, regardless of the purchase price.
While this change may allow you to purchase a home at any purchase price, it doesn’t mean you qualify for an unlimited loan. You’ll still need to qualify for underwriting and credit requirements in order to take out a VA loan for your new home. However, this change could help you get a higher-priced home that you can afford without needing to put a large chunk of money down.
Additionally, although you can get 100% financing for a higher-priced home, the conforming loan limits are still important. Lenders will still use the conforming loan limits to determine if you need a conforming VA loan or a jumbo VA loan product.
Riverside VA County Loan Limits for Veterans Without Full Entitlement
The changes to VA loan limits in Riverside County only apply for Veterans with full entitlement. If you don’t have full entitlement, you will still need to stay within conforming loan limits. You may be able to restore your VA loan entitlement by refinancing a current VA loan to a conventional mortgage. This would allow you to take advantage of the new guidelines because VA home loan limits have been eliminated.
Other Changes to VA Loans in Riverside County
There are also several small changes taking effect in 2020 regarding the VA Funding Fee. The Funding Fee is set to rise for most active duty Veterans. On the other hand, most Reservists are set to see a small drop in the cost of VA Funding Fees. Additionally, Purple Heart Recipients are exempt from the fee regardless of disability status.
Take Advantage of New VA Home Loan Limits Today
Want to see how the elimination of loan limits could help you buy a home in Riverside County? Get in touch with SoCal VA Homes to learn more today.