VA Loan Limits Change for 2012
The Department of Veterans Affairs has released a circular announcing changes to the VA loan maximum guaranty for the remainder of 2012. According to VA Circular 26-12-7, Maximum Guaranty for Loans Closed August 6, 2012 to December 31, 2012, recent legislation signed into law by the President includes authorization of these changes.
“The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 was signed into law August 6, 2012. Effective with the signing of this bill, a method previously used to derive the Department of Veterans Affairs (VA) loan limits has been restored and will be in effect through December 31, 2014.” The VA Circular says.
Updated loan limits for loans closed on or after August 6, 2012 through December 31, 2012, have been posted here.
When the Department of Veterans Affairs makes changes to the VA loan guaranty limits, it is usually quick to point out, “while VA does not have a maximum loan amount, the county ‘limits’ must be used to calculate VA’s maximum guaranty amount for that county.” VA loan amounts are governed by the appraised value of the home, the amount the lender is willing to lend, and guided by the maximum VA guaranty for that housing market.
VA loan limits are normally updated annually, so there will be another look at these maximum rates coming soon. VA Circular 26-12-7 states, “Calendar year 2013 county loan limits will be posted once VA receives median price data from the Federal Housing Finance Agency (FHFA).”
“This transmittal from FHFA typically happens in November. If a loan limit for a county decreases in 2013, VA will guarantee a loan using the previous higher limit if there is proof of a pre-approval based on a sales contract or a Uniform Residential Loan Application (URLA) executed on or before December 31, 2012.”
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