VA Loan Information 2014 – Has the Details

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A new guide from Loan Love helps VA borrowers navigate the changes made to the loan program in 2014. is a borrower advice website that offers in-depth information on loans in an easy to understand and entertaining format. As a trusted destination for current news and expert loan advice, Loan Love empowers its readers with first class knowledge, valuable resources and connections to the top rated industry professionals. Recently, the website released a guide that can help borrowers to understand any new VA loan information 2014 will bring.

The article, titled “VA Loan Changes 2014: What Every Veteran Needs to Know,” says, “The calendar is pointing to a new year and along with it, some changes in loan programs for home owners. If you are planning to take advantage of a VA loan to purchase a home this year, it’s important to know whether any changes could affect your loan. The VA home loan program was created to allow veterans to buy homes with favorable loan terms, including an interest rate that is typically lower than the rate charged for other mortgage loans. The program is available to active duty service personnel, members of the selected reserve and certain categories of spouses. Private lenders, such as credit unions, banks and mortgage companies, provide the loans. The VA guarantees a portion of the loan, enabling these lenders to provide more favorable terms than they could otherwise.”

The article goes on to explain that probably the rule that most borrowers are worried about is the Qualified Mortgage Rule (QM) that has received so much media attention going in to 2014. “The new QM classification came about as a result of congressional action seeking to protect borrowers and the mortgage industry from repeating the practices that led to the housing industry crisis, specifically loans that were made to people who were very unlikely to be able to repay them. So-called subprime mortgages were at the center of the recent economic crisis and subsequent collapse of the housing market.”

However, as the article points out, “The most important thing to know about QM requirements is that the VA loan program has long been following these guidelines, so VA borrowers should not anticipate any new bumps in the road.”

The VA mortgage guide then takes a look at some actual changes to the program, such as the VA Loan limits. It states that although the standard limit for most counties is unchanged, some areas are seeing a higher limit due to the increased cost of living in those particular counties. The article explains, “As in the past, VA loan participants have two "layers" of loan entitlements. The first is $36,000, while the second is $68,250, for a total of $104,250. The loan limit is calculated as $104,240 x 4 or $417,000, based on the VA’s commitment to guarantee about a quarter of the loan amount, representing the maximum VA borrowers can receive without putting money down (in most areas of the country).”

For more information about the changes to the VA program, please click here to read the full article.

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Kevin Blue
Loan Love
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