There are some big changes to the VA loan program coming in 2020.  New federal legislation was signed this year regarding the Blue Water Navy Vietnam Veterans Act of 2019. The new law addresses the expansion of VA disability benefits for Agent Orange exposure to those who served in ships off the coast of Vietnam during the war. Previously, only those who served in-country or on inland waters were eligible for disability benefits. (

So what does this mean for VA home loans? Here’s the latest update from Veterans United Home Loans:

Goodbye VA Loan Limits!

Removing the VA loan limits for qualified buyers means VA loans can stay competitive with conventional offers. (This is a big win for veterans!) It also means you can borrow more with no downpayment. Note: down payment/equity requirements still apply for buyers using second-tier entitlement.

Changes in Funding Fees

Now, National Guard and Reserve buyers will all be paying the same funding fee as regular Military buyers. Purple Heart recipients on active duty will be exempt from funding fees. All other funding fees for veterans without a disability rating are increasing slightly for the next two years.

Native American Direct Loan

Native American Direct Loan – The new law removes the loan limit of $80,000 for Veterans using their entitlement for a VA Native American Direct loan to build or purchase a home on Federal trust land.

If You’re Pre-Approved or Currently Under Contract:

These changes take effect for all closings on or after January 1, 2020. Depending on what works best for you, you may want to close before 2020 to avoid higher funding fees or try to close in 2020 to avoid making a down payment. Consult with your loan officer about what options work best for your home purchase.


We count ourselves incredibly lucky to have the opportunity to work with so many clients who are active and retired military. If you are curious about buying a home, shoot us a message! We would love the opportunity to connect and help.