2016 VA Loan Limits
Determining Veterans Affairs loan limits is very easy in some cases, and in other instances can be a little tricky. It can depend on whether the home is located in a high cost area, and if you have full entitlement or partial entitlement due to a previous Veterans Affairs mortgage. We have provided basic explanations below, but if you still have questions the best thing to do is fill out the short form to the right, and a specialist will contact you to help you determine the maximum loan amount for your specific scenario.
For Most Eligible Veterans
Effective January 1, 2017, the VA’s 2017 Loan Limits are the same as the Federal Housing Finance Agency’s limits. The majority of the counties in the US are not considered high cost, and thus the loan limit for those counties is the same as the conventional home loan limit of $424,100. This is also assuming that the Veteran has all of his/her available eligibility entitlement, which most do.
For High Cost Areas
Certain areas are considered high cost based on the median home values in the designated county, as estimated by the Federal Housing Administration (FHA). These values are the basis for which the Department of Veterans Affairs calculates the maximum VA loan amount in these counties.
The following states have high cost counties: AK, CA, CO, CT, DC, GU, HI, ID, MA, MD, NH, NJ, NY, PA, TN, UT, VA, VI, WAS, WV, WY. If the home is located in one of these states you can check the specific county loan limit at this link to the Federal Finance Housing Agency’s website.
With a VA Jumbo Loan
Regardless of where the home you are financing is located, it is possible to borrow more than the limit for the area with what is known as high balance VA mortgage, aka a VA Jumbo Loan. However, in this scenario 100% financing will not be available. A down payment will be required but it may be significantly less than what would be required for a conventional loan. Read more about VA Jumbo Loans.
With Partial Entitlement
In most cases, if you have had a previous VA mortgage and sold the home, the balance was paid off and your full entitlement was (or will be) restored. However, if you have kept the home (as a rental, second home, for a family member etc.) or had another situation where entitlement was not fully restored (short sale, foreclosure etc.) you may have a partial entitlement available which you can use for another VA Mortgage, however the amount you can borrow will likely be adjusted.
How much you can borrow is dependent on the sales price/value of the home being financed, how much entitlement is available, the county loan limit, and cash or equity available as a down payment. Explaining the calculation in writing can be confusing, so if you have a partial entitlement scenario we recommend you fill out the short form to the right and a VA Mortgage Specialist will contact you to help you determine how much you can borrow. If you really want to tackle it on your own we suggest you check out this page with examples on the Veteran Affairs website.
VALoanCenter.net is not a government agency website or affiliated with the Department of Veterans Affairs. VALoanCenter.net has relationships with VA Loan Specialists who work for VA approved lenders. VALoanCenter.net may share your information with these trusted affiliates in order to assist you.