VA Loan Limits for 2015
The Department of Veterans Affairs has issued news about VA loan limits by county for 2015. According to VA circular 26-14-39, “the 2015 county loan limits Department of Veterans Affairs (VA) Loan Limits, in the event Public Law 110-389 expires on December 31, 2014.”
Should that happen as mentioned in the opening of the VA circular, dated December 9 2014, the VA loan limits for 2014 will mirror those set by the Federal Housing Finance Agency. According to the VA circular:
“Currently, VA’s maximum guaranty amounts are governed by 38 U.S.C. 3703(a)(1)(C), and are statutorily indexed to the loan limits established by the Federal Housing Finance Agency (FHFA) in 12 U.S.C. §1454(a)(2) for Freddie Mac. These limits are based on median house prices reported by the Federal Housing Administration each year.”
“The FHFA conforming loan limits currently range from a base of $417,000 to a high-cost-area limit of $625,500.” The VA announcement adds, “The statutory authority was granted to VA in 2008, under Public Law 110-389, and is currently set to expire on December 31, 2014. Once the authority expires, VA’s effective loan limits will reset to FHFA’s limits.”
What happens to borrowers who started the VA loan process in 2014 and don’t take ownership of the home until sometime in 2015? Would loan limits that decrease in the new year affect the transaction?
According to the VA, in areas where a county loan limit has decreased, the VA will honor the original previous higher limit – provided the sales contract has been formally approved and the Uniform Residential Loan Application (URLA) has been signed before January 1, 2015.
For more information, discuss your situation with your loan officer. You can learn more about VA home loan limits at the VA’s official site.
Do you have questions about VA home loans? Ask us in the comments section.