If you’re a Vet (Veteran) in Los Angeles or Orange County, and other higher cost counties, you’ve probably already heard the news: the VA is removing its county loan limits completely in January 2020. You won’t be limited on a No Down Payment VA loan of $726,525 any longer. You’ll have more options than ever to buy higher priced homes using your VA home loan benefit.
Can I buy a $1 million or $2 million home with a VA home mortgage?
Yes! With county loan limits going away in January 2020, this may open up a lot of properties to you that could be wise investments. If you’re willing to live on a property which also includes up to three additional rental units, you could have very low monthly out-of-pocket costs. Take that money, save it, and invest it wisely.
If your income qualifies for a $1 million or $2 million single family home, go for it. Without county loan limits, you’ll find a whole range of fantastic neighbourhoods and homes throughout Los Angeles and Orange County that you can buy with a zero down payment VA home mortgage loan.
You don’t have to limit your choices to a single family residence. While VA home loans are limited to your primary residence, you can use a VA mortgage to buy a property with up to four units. A lot of smart Vets have chosen this option. They and their family can live in one unit while renting out the other units.
What are some other changes coming up for the new VA mortgages in 2020?
The VA funding fee, which you can either pay up front or roll into the mortgage, will be 2.3% of the loan if it’s your first time using your VA home loan benefit. If you’re using your benefit for the second time or more, your funding fee will be 3.6%. If you’re in the National Guard or Reserves, you’ll be paying the same fee as regular service members for the first time.
Active-duty servicemembers who’ve received a Purple Heart won’t need to pay the funding fee starting in January 2020. They join Vets with a ten percent disability rating or higher and Vets receiving disability payments, who are all exempt from the VA funding fee. As an CVLS designated independent mortgage broker who is a Certified Veteran Loan Specialist, we can run your eligibility, and based on your income get you approved for a VA mortgage for $1 million or $2 million to buy a property in Los Angeles and Orange County or wherever else in California you choose to live.