VA LOAN CAPTAIN BLOG & Learning Center

VA Home Loan Lending Limits

By: Grant Moon 07/24/12 05:26 am

The limit on VA Loans is $417,000 in most counties, however can be much higher if the home resides in certain high cost counties go up to $625,000 and list of these counties can be found here.  If the home is purchased above the limits established a VA Jumbo Loan could be done but requires the beneficiary to come up with a down payment to cover the difference between the limit and the home price. The below states and territories in Table 1 have certain high cost counties and higher allowable limits.

 Table 1

Alaska Maryland
California New Hampshire
Colorado New Jersey
Connecticut New York
District of Columbia(DC) Pennsylvania
Guam Utah
Hawaii Virginia
Idaho Washington
Massachusetts Wyoming

 

It is important to note that the VA does not establish a limit on VA Loans however does establish a maximum amount that they will guarantee. The VA will guarantee 25% of the value of a home and that’s the reason why you don’t have to make a down payment or pay PMI. So, for example if you loan in a county that is not considered a high cost area the maximum that the VA will guarantee is 25% of $417,000 or $104,250. For higher cost areas the same formula applies.

Loan limits are something to be carefully considered as the higher the loan amount the higher your payment. Even if you can afford to purchase a higher valued home doesn’t necessarily mean that it is a good idea. Most consider 33% of your total payment as a percentage of your monthly income to be the maximum that should be considered. When planning what loan size is right for you it is always best to not stretch your ability to make your payment because situations can change quickly with a fragile jobs market.

You can use a variety of tools that will give you an estimate on what your monthly payment would look like here.

VA Loan Captain, Inc. is a Service Disabled Veteran Owned Small Business (SDVOSB) that assists veterans and servicemembers purchase or refinance a home at a competitive interest rate with their network of VA Approved Lenders. As a company with a social mission $200 is provided to a veteran focused charity for every loan closed.

For more information please visit www.valoancaptain.com

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