In January, a new law governing mortgages guaranteed by the Department of Veterans Affairs took effect, the Wall Street Journal reported. Now borrowers using VA loans can borrow any amount of money — as long as they qualify — with no down payment. Previously, zero down payment loans were capped at the same level as conforming loans. The new rules also affect refinances. In 2019, about 10 percent of all loans written for home purchases were VA loans — up from about 2 percent before the recession, said John Bell III, deputy director of the home loan program for the Department of Veterans Affairs. The increase in usage is partly due to improvements in the way the program works. Loans take only a day or two longer to close than conventional loans, Bell said. (Subscription required.)
