The Veterans’ Administration removed the price cap on VA mortgages on January 1st. That means if you’re a vet, you may qualify for a zero-down mortgage, with no limit on the price of the home.
Due to the ballooning costs of single-family homes and condos around the U.S., veterans no longer have a price cap on a zero-down home loan. Under the program, qualifying veterans with sufficient income and credit get a no-down-payment loan when buying their home.
“Previously, veterans could still apply for a no-down-payment loan for a home that exceeded the cap,” said Chris Birk, director of education for Veterans United Home Loans, the country’s largest VA lender. “But they would have to make a down payment covering 25% of the difference between the loan limit and the sales price.”
“The price cap in 2019 for how much you could borrow was $484,350. So if you wanted to buy a $584,000 home, you had to put a $25,000 down payment,” Birk said. “That was still an incredible deal. But there were still veterans who were getting priced out.”