VA limits

VA Maximum Loan Amounts for 2012 and 2013

September 6, 2012

VA Maximum Loan Amounts for 2012 and 2013

In August 2012, a law known as the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 was signed into law.

Because of that legislation, the Department of Veterans Affairs issued a press release informing lenders and borrowers, “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.”

That meant that VA maximum loan limits were revised and some high-cost counties saw changes in the maximum VA loan guaranty available in those areas. The press release states, “Updated loan limits for loans closed on or after August 6, 2012 through December 31, 2012, have been posted here. Note that 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.”

What’s important for VA loan applicants to understand about these changes?

For starters, the new, updated loan limits are subject to change at the end of the year once more–the VA issues VA loan limits per county on an annual basis. There is no guarantee that the VA loan limits of today will be the same when the new tables are issued for 2013.

Borrowers who might be on the fence about apply for a VA mortgage should consider that when deciding whether to apply in calendar year 2012 or not.

Also, the method of calculating VA loan limits, as described in the press release, will expire in 2014 unless legal action is taken to extend that method of calculating the maximum VA loan guaranty. It’s not safe to assume current VA loan limits will remain the same from year to year based on the two factors mentioned above–it’s best to make your VA loan decisions based on current VA loan limits for this year, but don’t assume those limits will carry over into the new year. Depending on market conditions and other factors, those limits could go up or down.

Do you have questions about the VA home loan process? Ask us in the comments section.

2 Comments
  1. Marcia

    How long does it generally take to get a waiver for a loan that was foreclosed on against my eligibility so my COE can be restored?

    • Joe Wallace

      It's best to contact the VA directly on an issue such as this--discuss your specific circumstances with a VA rep by calling 1-800 827-1000.

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