Understanding the VA County Loan Limit
04-28-2021 • MHS Lending
The VA Home Loan is one of the most powerful loans available and is reserved exclusively for military members and their families. While the VA Home Loan has been around for decades, it’s important that as a homebuyer you feel confident when purchasing a home. Understanding the ins and outs of the VA Loan as well as all fees and limits will help set you up for success from day one. One of the questions many home buyers ask lenders and realtors when beginning their process is, “how much can I get with the VA Loan?” Depending on your circumstance, you may be subject to following what’s called a County Loan Limit. Luckily, in 2020, VA Loan limits were eliminated for active-duty military and veterans who have full VA loan entitlement. Read on to learn more about the limit and if it applies to you.
What Is The VA County Loan Limit?Historically, the Department of Veterans Affairs who guarantees VA Loans set a loan limit for borrowers. This limit is referred to as the VA County Loan Limit and is determined by the location of the property you’re looking to buy. The County Loan Limit does not necessarily set the maximum amount you can borrow, it simply refers to the amount of money the government will guarantee. Buyers who are subject to the County Loan Limit can find other ways of purchasing a home above that limit, such as using the VA Jumbo Loan.
Who Does The County Loan Limit Apply To?In 2020, the Department of Veterans Affairs announced that VA Loan Limits, including the VA County Loan Limit, are eliminated for qualified active-duty military and veterans who still have their entire VA loan entitlement. In order to still have your full entitlement you must fit into one of these three categories:
- You haven’t used your VA home loan benefit before
- You’ve had a VA home loan before but you’ve either paid it in full or sold the property
- You’ve had a VA home loan before but had a foreclosure and repaid the government in full