The VA loan limit refers to the maximum loan amount that the VA will guarantee without a down payment. For most U.S. counties, the VA loan limit is $417,000. VA borrowers can get the most out of their benefits if they learn this tip of the week: know your VA loan limits.
Qualified borrowers can purchase or refinance up to 100% of $417,000 with their home loan benefits. It’s important to note that the VA doesn’t limit the amount of loan an eligible borrower can get. Loan size is determined by how much a borrower can afford based on their income and credit. Most VA borrowers who want a loan over the limit will have to come up with some cash as collateral.
Loan Limits Exceed $417,000 In Some Areas
In certain high-cost areas, loan limits exceed $417,000. Housing markets can vary across the country. It’s well known that real estate can cost more in Aspen, Nantucket, Laguna Beach, Manhattan and many other areas. The VA recognizes this and adjusts its loan limits accordingly. In some high-costs housing markets, it’s possible for qualified VA borrowers to get guaranteed loans for more than $417,000 and up to $1,000,000 depending on the loan limit there. Maybe that modest beach house isn’t as out of reach as you thought!
Housing Markets Can Change Loan Limits Annually
Housing prices go up, and housing prices go down. For now, prices are rising in most parts of the country while we continue to recover from the housing market crash of 2006. Each year the VA puts out new loan limits that somewhat reflect the housing market. Though the limit of $417,000 for most counties has been constant for quite some time, the limits that exceed that amount can change. Sometimes a county will fall off the list of high-cost areas, and sometimes new counties are added.
To find out what the VA loan limit is in your area, contact a direct VA lender.