VA limits

VA Loan Limits For 2013?

November 30, 2012

VA Loan Limits For 2013?

The Department of Veterans Affairs annually revises its maximum loan guaranty information–the VA maximum guaranty data for one year may not necessarily be the same is it was for the previous year.

This is due to a variety of factors that affect the housing market. According to the VA official site, the maximum guaranty amount should not be confused with a “maximum loan amount”.

The VA does not impose a limit on how much you can borrow, but the official site advises, “there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.”

As of the time of this writing, the 2012 VA maximum guaranty amounts are the most up-to-date information available. The VA has not yet published its maximum guaranty amounts for 2013, but does offer the following basic information on VA loan limits:

“The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.¬†Interest rates are subject to change due to market fluctuations. VA evaluates these market trends and determines if interest rate reductions or increases are warranted.”

When the Department of Veterans Affairs updates its rate information for 2013, we’ll let you know about those rates and possible changes to them for high cost counties. If you need further explanation about VA loan limits, have a look at the helpful example page published on the VA official site here.

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


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