Loan limits are increasing across the board for 2019 and that includes VA loan limits. Federal housing officials in November approved an increase in the conforming loan limits (those sold to Fannie Mae and Freddie Mac) for all areas of the country.
As a result, VA loan limits have also increased. While loan limits can vary significantly depending on the location and type of property, they general range from $484,350 to $726,525 (an increase from 2018). You can find the conforming loan limits for your area here.
2019 VA loan limits
For most borrowers, the VA loan limit increased to $484,350 for 2019. This is in direct response to escalating home prices across the nation. In areas with higher costs of living, such as certain parts of California and New York, that limits reached $726,525. Those two figures are the floor and clieling loan amounts for VA mortgage loans in 2019.
Borrow more with jumbo loans
As we’ve mentioned in other blog posts, the VA does not put a limit on how much a lender can lend with a VA home loan. However, the VA does cap it’s liability and therefore lenders set their own limits. That means it is possible to borrow more than the conforming loan limit if the lender permits. And loans over the limit do require a down payment.
In general:
- VA borrowers who stay within the loan limits can qualify for 100 percent financing, which eliminates the need for a down payment.
- Borrowers who want to borrow above the limit usually have to make a down payment for 25 percent of the difference.
That’s typically how it works. But there may be exceptions to these rules.
Qualifying for higher amounts
Just because the loan limits are increasing in 2019 does not mean you will qualify for the higher amount. You must still meet certain income and debt requirements. All mortgage lenders use what is known as the debt-to-income ratio to determine affordability.
For more information on VA loan limits or to speak with a VA loan expert, please call us at (888) 320-7888 or visit www.MortgagesforVeterans.org
