The Blue Water Navy Vietnam Veterans Act of 2019 (the “Act”) was signed into law on June 25, 2019. The Act provides additional health care benefits for veterans exposed to Agent Orange and includes changes to the VA’s Home Loan Guaranty Program.
Section 6(a) of the Act changes the limit on the maximum guaranty amount from 25 percent of the Freddie Mac conforming loan limit limitation to 25 percent of “the loan amount” (See 38 U.S.C.A. § 3703(C)). In effect, veterans are now able to borrow loan amounts exceeding conforming loan limits without any down payment. Section 6(b) of the Act provides a new loan fee table for 38 U.S.C.A. §3703(a)(1), which adjusts loan rate fees for non-disabled veterans.
The amendments are applicable to loans guaranteed on or after January 1, 2020.
UPDATE: On August 9, 2019, the VA released Circular 26-19-23 detailing policy changes related to the Blue Water Navy Vietnam Veterans Act of 2019, effective for loans closed on or after January 1, 2020. The Circular includes examples how to calculate the maximum amount of guaranty for a loan, and a loan fee/ funding fee table.
To view Circular 26-19-23, click here.