VA issued Circular 26-19-23, providing interim guidance pertaining to VA’s implementation of the Blue Water Navy Vietnam Veterans Act of 2019 (Act). The Act was enacted on June 25, 2019 and becomes effective January 1, 2020. The Circular provides guidance related to the implementation of sections 6 and 7 of the Act. Sections 6 and 7 of the Act:
- expanded maximum guaranty amounts (i.e., loan limits) for purchase, construction, and cash-out refinance loans greater than the Freddie Mac conforming loan limits in certain circumstances;
- added a waiver to the funding fee requirement for members of the Armed Forces who are serving on active duty and who have been awarded a purple heart; and
- replaced the existing loan fee/funding fee table.
The expanded loan limits and updated loan fees/funding fees apply to all loans closed on or after January 1, 2020. All other provisions are effective January 1, 2020.
