VA has published the loan limits for 2013. The loan limits listed below are not the maximum loan amounts that an eligible veteran may borrower; the loan amounts below are used to calculate the VA’s maximum guaranty amount in a specific county.
King, Pierce and Snohomish Counties went up a little while San Juan County was adjusted slightly lower. VA loan limits are based on the county’s median home values as estimated by FHA (Federal Housing Adminstration).
King County: $500,000
Pierce County: $500,000
San Juan County: $468,750
Snohomish County: $500,000
All other counties remain at $417,000
This means that in King County, a qualified Veteran can finance a home with zero down with a sales price up to $500,000.
Any sales price/loan amount above this amount is considered a “VA Jumbo”. VA does not have a loan limit for VA jumbos, however most lenders have “overlays” limiting loan amounts for VA Jumbos. VA Jumbos allow the Vet to buy a home with reduced down payment. A simple formula to estimate the minimum down payment required is sales price minus loan amount x 25% = minimum down payment.
For example, home in Seattle with a sales price of $600,000 would have a down payment requirement of $25,000 for an eligible veteran. $600,000 sales price less the $500,000 loan limit = $100,000. $100,000 x 25% = $25,000.
If you’re considering a VA mortgage loan to buy or refinance a home located anywhere in Washington state, I’m honored to help you.