VA Loan Limit Facts
VA loan applicants have several factors that are combined to determine how much of a VA loan they can be approved for; those factors include how much VA loan entitlement is available for use, how much a potential home is worth on the market, and what the VA loan limits for a particular geographic area might be.
Since all of these factors are subject to change, there’s no single answer to the question, “How much money can I borrow with a VA home loan?”
The value of a particular home and the amount of VA entitlement available are obviously determined on a case-by-case basis, but what about the VA loan limit for a particular county? These limits are not fixed–they are published once per year and while some areas may keep the same VA loan limit from year to year depending on the market, there are no guarantees that those numbers can or will remain the same.
The VA official site says there is no actual number a VA borrower can count on as the limit. “The Department of Veterans Affairs Loan Guaranty program does not impose a maximum amount that an eligible veteran may borrow using a VA guaranteed loan.” That’s not to say there aren’t any limits, but rather that, as stated before, the VA doesn’t impose a specific number across the board. “…county “limits” must be used to calculate VA’s maximum guaranty amount for a particular county.”
These limits have an expiration date and are recalculated every year. In 2011, the VA loan limits by county expire on September 30. According to the Department of Veterans Affairs in 2011, “The maximum guaranty amount (available for loans over $144,000) is 25 percent of the 2011 VA limit…Therefore, a veteran with full entitlement available may borrow up to the 2011 VA limit shown below and VA will guarantee 25 percent of the loan amount.”
The VA published the 2011 VA home loan limits by county here. Any county not found on this list features a 2011 limit of $417,000. It’s important to remember that these are only the limits–VA borrowers may find they aren’t eligible to borrow the entire amount allowed if the home’s market value is lower or if there isn’t enough VA loan entitlement left for the borrower to use from a previous VA loan transaction.
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