The Department of Veterans Affairs has announced the VA loan guaranty limits for 2017. The VA loan limits are updated yearly, but in the past have been amended as-needed based on legislation or other changes to the federal laws and regulations that govern the VA home loan program.
According to the VA official site, the VA mortgage loan guaranty limits for 2017 will be identical to the Federal Housing Finance Agency’s (FHFA) limits for 2017. VA loan limits are not identical across the U.S. because some areas are considered high-cost, while others are considered low-cost areas.
You can view the FHFA 2017 loan guaranty limits at https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx
High-cost areas will naturally have a different limit, and likewise for low-cost areas. The VA loan guaranty limit does NOT restrict how much of a loan a potential VA loan applicant may get; it does state how much the VA will guarantee on a specific transaction in a specific housing market without a down payment.
From the VA official site, we get this explanation of VA loan limit policy:
“VA does not set a cap on how much you can borrow to finance your home. However, 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.”
An eligible VA borrower’s basic VA home loan entitlement is $36,000. According to VA.gov, “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”.
Borrowers can get assistance with loan limit issues in their housing market by speaking with a participating VA loan officer. The loan limits, possible down payment requirements (where applicable) and appraisal questions you may have can be answered by a loan officer, based on what is reasonable and customary in your market.