Each year, changes are made to the existing legislature that provides additional advantages to many men and women. Prospective homeowners will be pleased to know that in 2020, Congress passed a new bill which changes the benefits that the men and women enlisted in our armed forces receive in 2021. It's known as the Johnny Isakson and David P. Roe, M.D., Veterans Health Care, and Benefits Improvement Act of 2020.

The Johnny Isakson and David P. Roe, M.D., Veterans Health Care and Benefits Improvement Act of 2020

Signed into law last year, the Johnny Isakson and David P. Roe, M.D., Veterans Health Care and Benefits Improvement Act of 2020 impacts veterans in a number of ways. These benefits, administered by the Department of Veterans Affairs, include expansions of Medal of Honor pension, life insurance policies for disabled veterans, and memorial benefits. Regarding real estate, this act now extends VA home loan benefits to members of the National Guard.

Under this act, members of the National Guard who did not have any active-duty service can receive a VA home loan from 2021 onward. This also includes Reserve members. Previously, members of the National Guard or Reserves needed to accrue a minimum of 90 days of active-duty service to be eligible for a VA home loan. Now, these members of our armed forces will qualify for the VA home loan if they've accrued 90-days of any service, 30 of which must be consecutive.

Changes to VA Loan Limits

The Johnny Isakson and David P. Roe, M.D., Veterans Health Care, and Benefits Improvement Act of 2020 wasn't the only adjustment made to VA home loans. In 2019, other changes were made to VA loan limits that will benefit certain lenders from 2020 and beyond. Known as the Blue Water Navy Vietnam Act of 2019, this act benefitted current and former armed forces members by eliminating VA loan limits.

Essentially, those who are either serving in active-duty or who are veterans will not have to worry about any limits to their VA loans. Those who qualify will not have a cap on the amount that they can borrow and will not need to put money down. Unfortunately, this does not apply to those who have previously defaulted on a VA loan or who have an existing VA loan that's still active. These individuals can still obtain a VA loan and exceed the limit offered but will have to present a down payment.

In many markets around the country, now is the perfect time for qualified first-time buyers to take advantage of the new changes to VA loan benefits. With the elimination of loan limits, and VA loan offerings to more members of the armed forces, thousands of men and women who are serving or have served in the U.S. military can make their home buying dreams come true in 2021.

Our real estate agents are happy to answer any questions you have about these recent changes. Contact us today!