Page 3 - Newsletter Dec 2017

VA halts new Veteran ID Cards because it can’t handle the volume

The Department of Veterans Affairs (VA) has temporarily suspended its application system for new veteran identification cards due to a “high
volume of traffic,” according to a notice when applying to its program on the website.
Veterans seeking to apply for a new veteran ID card were met with a notice telling them that the system was down and they were working on
fixing the issue.
“We are aware some veterans have experienced issues with the
application process, but leaders of VA’s Office of Information and
Technology are actively engaged in fixing them,” Curtis Cashour, the VA’s
press secretary, said in a statement.
“Many veterans have successfully registered for the card since the
program was announced, and we are excited finally to begin providing this
resource to veterans, fulfilling a promise that was made to them more than
two years ago under the previous administration,” he said.
The online application system for the veteran identification cards rolled out
last week but has already faced technical issues.
The free identification cards were mandated by Congress in 2015 with the expected roll-out of the cards in 2017.
The ID cards were created as an easy form of proof of service.
After applying for the identification cards, they would be delivered to veterans within the next 60 days. Digital copies would be available to print
out until the mailed copies are delivered.
It is unclear how many veterans were able to apply for the identification card before the system was suspended.
The new identification cards do not qualify as official government-issued identification for several uses, and won’t replace VA medical cards or
defense retiree cards.

Q&A

Does the VA have a maximum loan amount?
The VA loan guaranty program does not impose a maximum amount that an eligible veteran may borrow using a VA loan. However, it
can limit the maximum “guaranty” amount. “Guarantee” means the lender is protected against loss in the event of a foreclosure, and
replaces the protection the lender normally receives by requiring a down payment and/or PMI allowing the veteran to obtain favorable
financing terms.

In 2018 this amount will be increased from $424,100 (2017) to $453,100 (2018). In some high-cost counties, this amount can be
higher, follow the data on VA’s chart to determine the VA's maximum guaranty amount for a particular county (i.e. in Monroe County
the limit will be $529,000). These limits apply to all loans closed January 1, 2018 and afterwards.

The VA just published Circular 26-17-41 - December 12, 2017 - 2018 Department of Veterans Affairs County Loan Limits. This
circular has further announcements about the changes to take effect on or after January 1, 2018.

It is important to note that VA does not impose a maximum loan amount that a Veteran may borrow to purchase a home; instead, the
law directs the maximum amount that VA may guarantee on a home loan. Because most VA loans are pooled in securities that require
a 25 percent guaranty, the effective no down payment loan limit on VA loans is typically four times VA’s maximum guaranty amount.
Lenders may make loans greater than the effective loan limit; however, the Veteran may be required to make a down payment;
typically 25 percent of the difference between the loan amount and the county loan limit. Down payments required on VA loans are
typically far less than down payments required on other loan products.

Regional Loan Center Contact Information:
St. Petersburg Department of Veterans Affairs VA Regional Loan Center 9500 Bay Pines Blvd. St. Petersburg, FL 33708 (Mail: P.O.
Box 1437, St. Petersburg, FL 33731) http://www.benefits.va.gov/stpetersburg/regional-loan-center.asp

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