VA County Loan Limits for 2012 Posted
Earlier this year we reported on the Department of Veterans Affairs addressing possible changes to its VA loan maximum loan limits in October.
According to the VA official site, “The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year.”
This message was issued in the wake of changes to other government home loan programs such as FHA mortgages, where maximum loan limits were lowered for high-cost counties due to congressional action.
In 2012, the methods used to calculate the VA loan maximum are different than those used in 2011. According to the VA official site, “The procedure for calculating loan limits for 2012 has changed from 2011. VA’s previous procedure expires December 31, 2011. If Congress passes legislation permitting VA to calculate maximum guaranty as it has in the past, the numbers below could increase slightly; they will NOT decrease. If that occurs, we will post announcements and reissue this loan limit chart.”
The new VA loan limits are posted at http://www.benefits.va.gov/
The VA maximum loans are broken down by county for the most expensive markets, all other areas not listed in the file feature a 2012 VA loan Limit is $417,000.
According to the website, the Department of Veterans Affairs “does not impose a maximum amount that an eligible veteran may borrow using a VA-guaranteed loan; however loan limits establish the maximum possible guaranty on a loan.” The maximum VA home loan guaranty amount for loans over $144,000 is “25 percent of the 2012 VA Limit” according to the official site.
Additionally, the borrower should be aware, “A veteran with full entitlement available may borrow up to the limit shown below and VA will guarantee 25 percent of the loan amount. If a veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that veteran is reduced accordingly. Lenders should check their own investor requirements regarding guaranty amounts and down payments.”