The U.S. Department of Veterans Affairs (VA) backed home mortgage loans are the highest-value loans the VA guarantees for servicemen and women without needing to pay a down payment. These loans are great options for people who have served the country or are the qualified family members of those who have served. The benefit has also just gotten a lot better. As of 2020, the VA eliminated loan limits for those that have full entitlement and haven’t used this benefit yet.
On December 2, 2020, the U.S. Department for Housing and Urban Development (HUD) announced its new 2021 limits for single-family homes. This is a significant announcement if you are considering applying for a Federal Housing Administration (FHA) loan in 2021. An FHA loan is a home mortgage that is federally insured if the borrower defaults on payments to the loan. FHA loans are a desirable option for first-time homebuyers since the down payment minimum is extremely low at 3.5% when compared to a conventional loan that commonly requires a down payment of at least 20% to avoid private mortgage insurance (PMI).