fbpx

      • Ask Gina About New VA Loan Limits

        Ask Gina About New VA Loan Limits
        Have you heard that Veterans Affairs has dropped the loan limit from $843,750 to $692,500? Not to fret,   Veterans can still borrow over the limit!
        The VA loan limits are simply what a Veteran can receive 100% financing up too!
        The VA guarantees 25% of the financed amount on a VA loan to the VA lender.  That means that if the borrower stops paying the mortgage, VA helps with the costs of that problem up to 25% of the balance which would make the loan similar to a conventional mortgage with a larger down payment in the lender’s portfolio.  Their guarantee stops at $692,500.  If the Veteran wants to borrow more than $692,500, they need to provide a SMALL down payment.  Here is an example:
        Home price = $800,000 – Difference between sales price and area loan limit ($800,000 – $692,500) equals $107,500.  Take 25% of $107,500 = $26,875.  That is the down payment that the borrower would need to make on an $800,000 purchase price.
        Compare that $26,875 down payment to the alternatives of utilizing a Jumbo, Conventional, or FHA loan.  The down payments toward an $800,000 home for each of those options would be over $100,000…up to $175,000! 
        With a small down payment, Veterans can exceed the newly implemented loan limits.  Your NOVA lender can calculate your down payment when going through the pre-approval process so that you can shop confidently for your Sterling, Virginia home.
        Once you have consulted your lender and further understand the VA home loan benefit and how it applies to you, call Ask Gina & Company at (703)574-3478 to unlock the possibilities!


        AGC thanks you for your service! 
        Information courtesy of Sean Glennon, Vice President at Home Savings & Trust Mortgage