The Blue Water Navy Vietnam Veterans Act of 2019 Circulars

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Seal of the US Department of Veterans Affairs


On August 9, 2019, Loan Guaranty Service (LGY) published VA Circular 26-19-23, which provided interim guidance on implementing The Blue Water Navy Vietnam Veterans Act of 2019 (the Act).  The Act removes the conforming loan limit cap on guarantees for Veterans with full entitlement, changes the funding fee tables, and adds a funding fee waiver for active duty Purple Heart recipients.  There are also changes affecting appraisals.  The Act takes effect on January 1, 2020.

The purpose of this communication is to announce that LGY is publishing additional Circular guidance regarding the Act.

  • Circular 26-19-30, Updated Guidance for Blue Water Navy Vietnam Veterans Act of 2019

The purpose of this Circular is to provide updated implementing loan policy guidance concerning section 6 of the Act.

  • Circular 26-19-31, Assisted Appraisal Processing Program (AAPP)

The purpose of this Circular is to implement section 7 of the Act, which authorizes VA to issue guidance explaining the conditions under which VA permits VA fee panel appraisers to rely on information provided by another person when making appraisals for VA’s home loan guaranty program. 

These Circulars have been posted to the following URL:

LGY has also developed a 30-minute training module regarding the Act and anticipates releasing it in the coming week.  Therefore, please be on the lookout for an e-mail notification with details on how to access this training.

Finally, VA is interested in gathering industry questions and concerns about implementation of the Act to ensure that any issues may be addressed prior to January 1, 2020.  To submit any questions, please follow the customer service protocols outlined in VA Circular 26-19-20 and include “Blue Water Navy Vietnam Veterans Act of 2019” under the subject line.  E-mail addresses for Loan Production or Construction & Valuation Sections at each Regional Loan Center (RLC) are provided under “Contact Us” on the Lender Resource Page


Thank you for your service to our Nation’s Veterans and Servicemembers,

Loan Guaranty Service