VA Loan Limits Increase 6.9% for 2019

January 14, 2019 by NASB

VA loan limit

Starting January 1, 2019, the VA Loan limit for veterans will be $484,350, an increase of $31,250 from 2018’s limit of $453,100. This will be the third year in a row that VA loan limits have increased. The limit for high-cost counties also increased from $679,650 to $726,525.

VA loans are guaranteed by the U.S. Department of Veteran Affairs, and veterans who are eligible can receive low interest rates with usually no down payment to help purchase or refinance a home. Some lenders also don’t charge lender fees on loans. The amount that is ultimately loaned, however, is up to the lender’s guidelines for loan qualifications. Some of these lender qualifications can include:

  1. Employment Verification - Proof of two years of steady employment; preferably with the same employer.
  2. Income - The last two years of income should be either at the same level or higher.  
  3. Credit Score - Your credit report should have less than two 30-day late payments in the last two years and show a minimum credit score of 620.
  4. Bankruptcy - You must be at least two years past any bankruptcy discharge date and have a qualifying credit score since the discharge.   
  5. Foreclosures - Any foreclosure must be at least two years old, and you must be able to demonstrate you have perfect credit following the foreclosure date.  
  6. Inspection – The home you are purchasing or refinancing will be subject to inspection and appraisal to determine the marketability and verify the current market value will be sufficient collateral to secure the loan.

Other conditions for your mortgage may apply; contact a NASB consultant for more information.

Although the VA does not cap the loan amount that can be borrowed to finance your home, there are limits to the amount of liability VA can assume. The VA loan limits represent the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. If the purchase price for a home exceeds the loan limit, lender will typically require a down payment to satisfy secondary market requirements.

If the purchase price for a home exceeds the loan limit, lenders will typically require a down payment of 25% of the amount above the loan limit. For instance, let’s say a veteran is purchasing a home for $539,250 in an area with a $484,350 VA loan limit. He or she would first figure the difference between $484,350 and $539,250, which is $54,900. The veteran would typically be required to put down 25% of that amount, or $13,725. This loan above the loan limit is known as a VA Jumbo loan.

If you have questions on how to obtain a VA mortgage loan, contact the experts at NASB at 855-465-0753, or get a free rate quote here.

 

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