VA Loans

A VA Loan is Designed to offer long-term financing to veterans. VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.


The VA Blue Water act removes loan limit restrictions that were in place prior to 01.01.2020.  As of the writing of this paragraph on 11.25.2019 the current rules of VA loans state that if the borrower exceeds the Freddie Mac loan limits for the county they are buying in there will be a down payment required from the qualifying veteran.  Genearally speaking this down payment amount is 25% of the difference between the maximum Freddie Mac lending limit and the purchase price.  This is all changing come Jan. 1, 2020.  Below is some guidance on what is changing and how it’s changing.  One of the large changes, including the lending limit removal, are the VA funding fee tables.  Those are below as well.

VA Blue Water Navy Vietnam Veterans Act of 2019

Effective with applications on and after November 25, 2019 and/or loans closing on and after January 1, 2020, we will align with VA Blue Water Navy Vietnam Veterans Act of 2019 guidance provided in VA announcement.  The updates will include the following:

  • Removal of the Freddie Mac conforming loan limit to expand maximum guaranty amounts for purchase and cash-out refinances for Veterans with full entitlement. However, there is not change to the maximum amount of guaranty entitlement available to Veterans for loans equal to less than $144,000.
  • For Veterans who have previously used entitlement and such entitlement has not been restored, the maximum amount of guaranty is the lesser of 25 percent of the loan amount OR the maximum amount of guaranty entitlement available. The maximum amount of guaranty entitlement is 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement previously used (not restored) by the Veteran.

­   The Ginnie Mae requirement for 25% guarantee based on the sales price or NOV must still be met.

  • Replacement of the VA Funding Fee table, as shown below.
  • Waiver of VA Funding Fee for Purple Heart Recipients by providing certificate or military orders prior to closing for evidence that the Veteran has been awarded the Purple Heart.
  • Type of Loan Down Payment Percentage of First Time Use Percentage for Subsequent Use
    Purchase and Construction Loans None 2.30% 3.60%
    5% but less than 10% 1.65% 1.65%
    10% or more 1.40% 1.40%
    Cash-Out Refinance Loans N/A 2.30% 3.60%
    IRRRLs N/A 0.50% 0.50%
    Loan Assumptions N/A 0.50% 0.50%


After establishing that you are eligible, you will need a Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. Call us so that we can give you a list of the evidence you need to submit to verify your eligibility for a VA home loan.



You’ll want to make sure there is a VA amendatory clause.  Here’s an example of a “VA Amendatory Clause”:

“It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs.”

You may also want the purchase agreement to allow you to “escape” from the contract without penalty if you can’t get a VA loan.


Apply for a VA Loan with a VA Qualified Lender

Great news!!! You’ve already found one because your on our website. We have access to multiple lenders and will shop for the best rate and terms on your VA loan. You may want to get “pre-qualified” at this point – that is, find out how big a loan you can afford. Lenders set their own interest rates, discount points, and closing points, so we shop around for you to find the best priced one that day.

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North Bay Capital

(707) 583-3666
2974 Night Song Way
Castle Rock, CO 80109


Company NMLS ID 1279902
Individual NMLS ID 278103
Company CA DRE 01970612
Individual CA DRE 01855372

This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).
Loans made or arranged pursuant to CA Bur of Real Estate – Real Estate Broker – Broker#1279902. California Bureau of Real Estate (877-373-4542). NMLS #1279902