Ask Gina About New VA Loan Limits
Have you heard that
Veterans Affairs has dropped the loan limit from $843,750 to $692,500? Not to
fret, Veterans can still borrow over the limit!
The VA loan limits are
simply what a Veteran can receive 100% financing up too!
The VA guarantees 25%
of the financed amount on a VA loan to the VA lender. That means that if
the borrower stops paying the mortgage, VA helps with the costs of that problem
up to 25% of the balance which would make the loan similar to a conventional
mortgage with a larger down payment in the lender’s portfolio. Their
guarantee stops at $692,500. If the Veteran wants to borrow more than
$692,500, they need to provide a SMALL down payment. Here is an example:
Home price = $800,000
– Difference between sales price and area loan limit ($800,000 - $692,500)
equals $107,500. Take 25% of $107,500 = $26,875. That is the down
payment that the borrower would need to make on an $800,000 purchase price.
Compare that $26,875
down payment to the alternatives of utilizing a Jumbo, Conventional, or FHA
loan. The down payments toward an $800,000 home for each of those options
would be over $100,000…up to $175,000!
With a small down
payment, Veterans can exceed the newly implemented loan limits. Your NOVA
lender can calculate your down payment when going through the pre-approval
process so that you can shop confidently for your Sterling, Virginia home.
Once you have consulted
your lender and further understand the VA home loan benefit and how it applies
to you, call Ask Gina & Company at (703)574-3478 to unlock the possibilities!
AGC thanks you
for your service!
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