The VA loan guaranty program caps the 2019 baseline loan limit at $484,350, which is applicable for homes purchased in most areas of the U.S. However, the cap is raised in high-cost counties to as high as $726,525.
The loan limits are the amount a qualified veteran with full entitlement may be able to borrow without making a down payment. The basic entitlement available to each eligible veteran is $36,000. Lenders will generally loan up to 4 times a veteran’s available entitlement without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price.
Qualified veterans can borrow over the cap for the county in which the home is located; however, the VA requires a 25% down payment on the difference between the purchase price and the local loan limit. So, for example, buyers who purchase a home for $100,000 over the local loan limit would be required to pay a $25,000 down payment.
Related: VA Home Loans | VA Loan Limits by County
What Are VA Loan Limits?
VA’s 2019 loan limits are the same as the Federal Housing Finance Agency’s limits. The loan limit is the amount a qualified veteran with full entitlement may be able to borrow without making a down payment.
The loan limit does not limit the amount a qualified veteran can pay for a home, only the amount that can be borrowed without a down payment. For home loans higher than the cap, the VA requires a 25% down payment on the difference between the purchase price and the local loan limit.
VA Loan Entitlement
The basic entitlement available to each eligible veteran is $36,000. Lenders will generally loan up to 4 times a veteran’s available entitlement without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price.
If eligible veterans do not use all their VA loan entitlement on the first home they purchase under the program, the remaining entitlement can be used to purchase another home. In this case, most lenders require that a combination of the guaranty entitlement and any cash down payment equal at least 25% of the reasonable value or sales price of the property, whichever is less.
Related: Freddie Mac
Home Loan Limits Higher In “High Cost” Areas
Home loan limits are higher in counties where the costs of homes are higher. In these areas, the cap can be as high as $726,525.
Examples of counties with higher loan limits include:
- Florida: Monroe County is $529,000.
- Pennsylvania: Pike County is $726,525.
- Virginia: 37 counties have higher loan limits ranging from $535,900 to $726,525.
To find the loan limit in your county, see Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar Year 2019.
Related: Fannie Mae
Marimark Mortgage
Marimark Mortgage is based in Tampa, Florida and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in VA home loans, in addition to conventional home mortgages, FHA, USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing, and help clients to lower their monthly mortgage payments.
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