In this post we discuss information regarding the history of the V.A home loan program. We also share the V.A. home loan limits set in the 2023 updates. These are the topics covered.
- HISTORY OF THE V.A. HOME LOAN PROGRAM
- THE GREATEST BENEFIT OFFERED TO U.S. VETERANS
- V.A. HOME LOAN LIMITS
- DIFFERENT USES FOR THE V.A.HOME LOAN
- OBTAINING YOUR CERTIFICATE OF ELIGIBILITY
History of the V.A. Home Loan Program
The V.A. home loan benefit was drafted and promoted by the American Legion as a part the Servicemen’s Readjustment Act of 1994 also known as the G.I. Bill. Congressed passed the act and the idea was an alternative to a cash bonus that would be less expensive for the government and would be more beneficial to veterans. The original G.I. Bill expired in 1956, and according to the V.A. the only part of the original bill that is still in effect is the V.A. home loan program. The original G.I. Bill expired in 1956, and according to the V.A. the only part of the original bill that is still in effect is the V.A. home loan program. The Veterans Housing Act of 1974 made it possible for veterans who had already used their benefit, to use it again.
The Greatest Benefit Offered to U.S. Veterans
The V.A. home loan program makes veterans to be competitive on the housing market by having ‘no money down’ loans without having to pay private mortgage insurance like an FHA loan will require. The V.A. home loan program also offers lower interest rates as well as other financial support in certain situations. There’s also the limit to closing cost the veteran pays, and some veterans will not have to pay any closing costs at all. As mentioned above, the veteran can reuse this benefit over and over. As opposed to offering a one-time cash bonus to veteran, the V.A. home loan can have much more impact on the veteran’s financial stability and credit health.
V.A. Home Loan Limits and 2023 Updates
The original V.A. home loan guarantee maximum was $2,000 and was raised t $4,000 in 1945. Since then it has been raised almost every year. The V.A. home loan maximums are similar to FHA loan limits across the country. The V.A. home loan limits are different per county. The 2023 V.A. home loan limit in Los Angeles county California, the V.A. home loan limits are as follows:
- $1,089,300 for single family residences
- $1,394,775 or two unit properties
- $1,685,850 for three unit properties
- $2,095,200 for four unit properties
It’s great that a veteran can use the V.A. home loan program to purchase a home over $1,000,000 in Los Angeles! To find out what the 2023 V.A. home loan limit is in your county click here: 2023 V.A. Home Loan Limits by County Nationwide to download an Excel spreadsheet with the loan limits nationwide by county.
Different Uses for the V.A. Home Loan
The V.A. home loan program is a powerful and versatile tool for eligible veterans. A veteran can use the benefit to purchase a home. Once the V.A. loan has been successfully paid off, the veteran can then use the benefit to buy another home, or even a multi-family property! The veteran doesn’t even have to sell their first, or any of their properties. Once the V.A. home loan has been satisfied the veteran could turn previously purchased properties into income earning properties. The veteran is only required to use the property with a current V.A. home loan as their primary residence.
A veteran that owns a home with equity, can use the V.A. home loan benefit to refinance their existing loan and pull the cash out of their equity for personal use. They could also use the benefit to refinance their loan to get a better interest rate resulting in a lower monthly payment.
Obtaining Your Certificate of Eligibility
There are several ways a veteran can obtain the Certificate of Eligibility which the lender will need to complete the process of providing a V.A. home loan backed mortgage loan for the veteran. Several lenders can consult with the veteran, and then the lender can obtain the COE for the veteran. A veteran can also request their COE through the mail by completing a VA Form 26-1880 and mailing that form to the VA. The easiest and preferred method in my opinion is for the veteran to use the Veterans Administration web site to obtain their COE. This is the fastest method for the veteran to get their COE. For more information visit the VA web site here: https://www.va.gov/housing-assistance/home-loans/how-to-request-coe/
Please contact me directly via phone call, text, or email to learn more and to discuss using your V.A. home loan benefit to purchase real estate.
Kieran Jackson, CA DRE #01903647