Changes to VA Loan Limits --- Increases Homeownership Opportunities for Veterans

Ginnie Mae announced in August 07, that it has eliminated the $417,000 home loan limit for VA loans.  However this new policy does not change the current VA guaranty loan limits or rules.  This change will expand the availability of low-cost financing and increase opportunities for homeownership to our veterans.

One of the best features of doing a VA loan is that there is no down payment required for eligible veterans up to $417,000, or less.  The next best feature for the veteran is they only have to come up with 25% of any amount above $417,000.  For example, a veteran purchasing a home valued at $500,000 will have to put $20,750 as a down payment.  ($500,000 minus $417,000 equals $83,000 multiplied by 25% equals $20,750).  So his loan amount will be $479,250.  Great opportunity for our veterans! 

If you should have any questions about these changes or would require any assistance for your veteran clients please call.  As a veteran myself, I am able to leverage information and contacts at different organizations to expedite the sourcing and processing of veterans issues.

H. Roy Bhiro, USAF Retired