VA Loan Limits for 2011 Now Available

The Department of Veterans Affairs does not set a maximum loan amount for VA mortgages. But that doesn't mean the VA will guaranty any loan amount; the VA has maximum amounts it will guaranty, which vary by county and are subject to change from year to year depending on market conditions.

The typical maximum for VA loan guarantees is $36,000 for loans below $144,000. That means the VA promises the lender $36K should the buyer default on the VA mortgage. For loans above $144,000, the VA will guaranty up to 25% based on county limits listed at the VA official site.

According to the VA, "...a veteran with full entitlement available may borrow up to the 2011 VA limit shown below and VA will guarantee 25 percent of the loan amount. If a veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that veteran must be reduced accordingly. Lenders should check their own investor requirements regarding guaranty amounts and downpayments."

To help borrowers, lenders and real estate agents, the Department of Veterans Affairs publishes an annual list of county loan limits for VA mortgages. The VA list consists of loan limits for all high-cost counties broken down by state; it's a directory of unique high cost markets from Alaska to Wyoming.

The VA list does not include all counties. Those not specifically named have a 2011 limit set at $417,000. If you don't see your county in the VA master list, it's safe to assume the county limit is $417,000 but you may direct any questions about the limits in your county to the nearest VA Regional Loan Center.