In the past year, there have been a lot of changes to VA Loan Limits. Here are some facts and figures from an expert source. It has details about how these updates will affect current homeowners or potential homebuyers.
VA Lenders can go above Fannie Mae’s limits when making loans in “high cost” areas. West Coast cities like Los Angeles, San Francisco, and Seattle are among these areas. Lenders cannot exceed $100k over the loan limit for conventional loans (FHA/Conventional). This limit is per county that they’re lending on behalf of veterans. If you happen to find yourself living in one of those high-cost counties, your lender must adhere to whatever amount outlined in your county.
For example, in a case where the FHA is capping VA Loan Limits per county to $517k, the value is different in “high cost” areas. Buying a home in San Francisco with the value currently set at around $950k may need an alternative lender. The alternative lender must be willing to make the loan on behalf of veterans. The good news is that current interest rates are low. There’s still hope for most veterans/homebuyers looking to take advantage of their veteran benefits. They can buy a new house with little or no money out of pocket.
VA Lenders can go over conventional loan limits by up to 15% when lending on homes located at a high cost. You cannot exceed $100k over the loan limit for conventional loans. (FHA/Conventional) per county that they’re lending on behalf of veterans.
Although there have been many updates, almost all lenders still adhere to Fannie Mae’s VA Loan Limit guidelines. This is regardless of the county of your home location. This means most veterans buying a new house will still have to come up with an estimated 20% down payment when purchasing their dream home. VA Lenders can go above VA Loan Limits when applying for loans in “high cost” areas such as West Coast cities like Los Angeles, San Francisco, and Seattle.
VA Loan Limits Updates you should know about VA Funding Fee Calculator. They should also include VA Lender Guidelines and VA Mortgage Rates. Other essential details include VA Loan Limits, VA Lenders, VA Funding Fee, and VA Loan Limits. It is also vital to include VA Home Loans, VA Benefits on Veteran Home Loans updates. The borrowers and lenders should also compare VA vs. FHA VA Refinance Guide for Veterans.
The updates should answer the following questions.
a. What is the VA Loan Limit?
The maximum amount of “VA-backed home loan” in 2018 is $484,350. This limit is set by the Department of Veterans Affairs (or VA) yearly through a process that includes Fannie Mae and Freddie Mac input. These two entities decided how they could guarantee a home loan without asking for the department’s approval. They also take into consideration any changes in national home prices and interest rates.
b. What Are the Benefits of a VA Mortgage?
Veterans buying homes using VA loans do make any down payment when buying homes in America. The government will guarantee the loan. Veterans only pay an upfront funding fee and regular mortgage insurance premiums.
c. What is a VA Streamline Loan?
VA streamline loans are mortgages that lenders can approve without having to ask for the department’s approval. It is the same as what you get with conventional home loans. But, the VA backs these loans, which means they’re safer than most other mortgages. In a streamlined loan, borrowers will receive their money within 30 days after closing their new house sale.
d. What is an FHA Loan?
An FHA home loan is another type of mortgage that lenders can approve without asking for the department’s approval, like what you get with VA loans. However, the FHA backs these home loans. Borrowers will be able to receive their funds within 45 days after closing on their new house sale.
Conclusion
VA Loan limits have regular updates. You can find an alternative lender who will be willing to make the loan on behalf of veterans. A cap cannot exceed more than $100k over the VA Loan Limit for conventional loans (FHA/Conventional) per county. Lenders may go above Fannie Mae’s limits when making loans in “high cost” areas. The updates should include relevant information needed by both homeowners and potential homebuyers.
