Understanding VA Loan Limits from BBMC

Regardless of the nature of a loan – VA, FHA or conventional – there are lending limitations set down by lending authorities Fannie Mae and Freddie Mac. These restrict the maximum loan amounts from lenders like BBMC Mortgage. In reality, this helps to ensure you’re not taking out a home loan beyond your budgetary limits. It’s a win-win.

Strict lending requirements on VA jumbo loans

 

Conventional jumbo loan applicants must meet certain income, employment and credit history requirements in order to qualify for a mortgage. VA jumbo loan applicants will be held to higher standards that conventional VA mortgage applicants. Strict lending requirements ensure your financial goals are satisfied while not compromising on the affordability to your budget. BBMC Mortgage Bankers can help you navigate tricky loan limits and help you buy the home you want. Sometimes, we can help you buy the home you want using your VA benefit, even if another lender said it wasn't possible. Call a VA Loan Specialist at BBMC to learn more about what requirements are necessary for a VA jumbo loan.

 

Of the 20+ million active duty service members and veterans with mortgages,a 2014 report shows less than 12% are utilizing their VA mortgage benefit*.

County of residence limits on VA Loans

As with any traditional lending option, there are VA loan limits too. Let’s say you’ve narrowed down the possible choice on your new house to two beautiful homes in two different counties. Now, let’s talk about your VA loan limits and how they’ll translate in your mortgage. 

One of the two homes you’ve found the most attractive resides in a county with a higher loan maximum than the other residence. This county, like many others across the nation, have higher real estate values than surrounding areas. For counties with higher real estate values, the loan maximum on a VA loan is limited to $625,500, meaning this is the highest amount BBMC can lend to you on your VA loan.

The other house, while just as gorgeous as the first, resides in a county with lower average real estate values. The VA loan limits on these counties is set at $417,000.

This isn’t meant as a deterrent; loan limits can end up saving you money. For instance, if there are not many noticeable differences between the floor plan or general layout of both houses in separate counties, the lower loan limit could mean you’ll require less financing without needing to sacrifice your specific housing goals.

Regulations and Fees

While the VA refinance loan is a federal program, the government generally does not make direct loans to applicants. Private lenders, including BBMC Mortgage, finance the loan while the Veteran's Administration offer an insurance guaranty. This guaranty provides an incentive for private lenders to offer loans with better terms, and protects them in the event of a customer default.

Loan Limits
In most parts of the country, applicants who qualify for the VA Loan can purchase a home worth up to $417,000. To find out the VA Loan Limit in your area, give BBMC a call at 1-800-24-RATES.

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*According to a 2014 report on Department of Veterans Affairs loan guarantee data.