VA Thought of the Week: What is the maximum VA loan amount in your area?
What is the maximum VA loan amount in your area? $484,350… $690,000… $726,525?
One of the biggest myths in the industry is that VA has loan caps on the maximum loan based on what county the property is located.
This is not true… the VA establishes a maximum guaranty based on the county the property is located, not a maximum loan. The Federal Housing Finance Agency (FHFA) provides an annual report each year that establishes the new conforming loan limits for each county in the United States. View that report here.
A Veteran can buy a home at any loan amount; however, if the purchase price is above the FHFA county conforming limit, then the Veteran will need a down payment.
How much will they need for the down payment? 25% of the amount over the VA limit.
For example, if the Veteran is buying a home in Florida for $584,350 then subtract the conforming FHFA limit from the purchase price and multiply by .25.
$584,350 - $84,350 = $100,000 * .25 = $25,000
What other program in the US can you buy a nearly $600,000 with just $25,000 down payment? What an amazing program for Veterans!
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