VA Loan Limits & Guidelines

By
Real Estate Appraiser with Donovan Group Realty

  The Department of Veterans Affairs will guaranty a VA home loan for a fully eligible veteran to a maximum of 25%. As an example, if a veteran is fully eligible for $104,250, the maximum loan amount with a VA guaranty is $417,000 with no down payment.

  Most counties in the United States fall under this $417,000 limit. The Department of Veterans Affairs has identified many High Cost Counties (about 146 throughout the US) where the VA will guaranty the veteran up to 25% of the limit for that county. For these loans, the Veteran's down payment is still $0 up to the higher limit. By definition, any of these loans for more than $417,000 are VA Jumbo loans.

Calculations for Loans Limits as Set by VA For counties where the VA maximum limit is $417,000:

  • Borrower has no money down up to $417,000.
  • Borrower pays a 25% down payment only on the loan amount over $417,000.
  • Borrower pays the funding fee in cash if the loan ranges from $417,000 to $1,000,000.
  • All of the VA benefits stay in place for loans over the $417,000.

For counties where the VA maximum limit exceeds $417,000 (known as VA Jumbo Loans):

  • Borrower does not have to pay any down payment for a loan up to the county maximum.
  • Borrower pays only 25% down payment on the amount greater than the county limit set by the VA.
  • Borrower pays the funding fee in cash for loan between the amount greater than the county limit set by the VA and $1,000,000.
  • For loans over $417,000, the veteran maintains all the benefits of a VA loan.

Additional Information about VA Jumbo Loans that exceed county limits set by VA:

  • Minimum FICO of 640 required for loans of more than $650,000.
  • The VA Jumbo Loan program does not include manufactured homes.
  • For loans greater than $417,000, the funding fees cannot be rolled into the loan. These must be paid in cash by the Veteran or by the Seller.
  • Multi Unit purchases ( 2-4 Units) top out at $417,000.
  • The VA Jumbo Program features only Fixed Rate loans

 

Posted by

Andrew McGrath - South Coast Metro Orange County

Comments (2)

Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Andrew - excellent post on VA loans.  Very appropriate for this holiday.  I like the  way you explain what happens in the jumbo loans too.

May 30, 2011 01:12 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Andrew, excellent input on VA Jumbo Loans.  Clear and easy for the buyer to understand.

May 31, 2011 12:41 AM