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The Veterans Affairs Administration has announced the VA home loan limits for the 2009 calendar year. The total loan amount for veterans is based on the county location of the property he or she intends to buy. The reason is that housing costs can vary greatly throughout the United States and many counties have much higher housing costs and the VA adjusts the loan limits to match the housing costs. The Veterans Affairs Administration is not responsible for approving VA loans and it does not control the loan limits. However, the administration will pledge 25% of the loan amount to the lending institution.
It is important to note that on October 10, 2008, President George Bush signed the Veterans’ Benefit Improvement Act of 2008. This act approves for a $0 down payment on VA home loans with limits as high as $729,000 as long as the loan is approved by December 31, 2011. For this year, approved buyers can complete a standard VA Loan application with $0 down for the maximum amount that has been approved for the county. There are over 170 counties in many states that are not a part of the $417,000 loan limit. It is important to verify the county you are purchasing your property in before finalizing your loan. If you qualify, there are new jumbo VA home loan limits up to $1,000,000. And, you are still able to complete the application process without any money down using the recently designed VA Loans Maximum Guaranty Amount guidelines. Qualified buyers can borrow up to $417,000, and even higher in counties with high housing costs. As with other VA loans, the VA will guarantee 25% of the loan. For loans up to $417,000, there is no down payment required. For loans over $417,000, the buyer is required to put down a 25% down payment. For loans from $417,000 up to $1,000,000, the buyer is required to pay a cash funding fee. For example, if your loan amount is $575,000, that means it would be $158,000 above the no money down limit. Therefore, you would be required to pay a 25% down payment of $35,750. To qualify for a jumbo loan, your credit score needs to be 680 or above. Fabricated homes do not qualify under the VA Loans Maximum Guaranty Amount program. VA home loan limits are also standard for multi-unit property purchases. All transactions involving refinancing are at the standard loan guidelines.
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