VA Loan Limits for 2012 for Homes in Washington

NOTE:  VA loan limits have been raised for the remainder of 2012 in certain counties per VA Circular 26-12-7. Click here for more information.

Below are the loan limits for VA loans in Washington State for 2012 which have reduced loan amounts for the “high balance” areas from 2011. Congress may still impact these loan limits and if so, I will update this post.

  • King, Snohomish and Pierce Counties:  $458,850
  • San Juan County: $432,400
  • All other counties in Washington state: $417,000

VA loan limits work differently than conventional or FHA insured mortgages. If a Veteran elects to purchase a home with a sales price higher than the loan limit, they’re down payment is 25% of the difference between the loan amount above and the sales price. This may be changing in 2012, from VA’s website:

2012 loan limits:  The procedure for calculating loan limits for 2012 has changed from 2011.  VA’s previous procedure expires December 31, 2011.  If Congress passes legislation permitting VA to calculate maximum guaranty as it has in the past, the numbers below could increase slightly; they will NOT decrease.  If that occurs, we will post announcements and reissue this loan limit chart.

Lenders have various limits as to how large of a VA loan they’ll fund.  This is one reason why it’s great to work with a company like Mortgage Master Service Corporation where we have several sources for government loans.   If I can provide you a quote for a VA loan on a home located in Washington state, please contact me.

I will keep you posted as soon as we have more information regarding the possible changes in 2012 VA loan limits and/or how they are calculated.  To stay up to date about topics like this, subscribe to my blog in the upper right corner.

VA Funding Fees…what briefly goes down, must quickly come back up.

Well the lower funding fees we thought we had were officially taken away when the President signed HR 674 raising the funding fees effective for VA loans closed November 22, 2011 through September 30, 2016.  The following is per Circular 26-11-19.

VA Funding Fees for Veterans 

First Time Use

Downpayment:

  • Less than 5%*:  2.15%
  • 5% but less than 10%:  1.50%
  • 10% or more:  1.25%    

Second and Subsequent Use

Downpayment:

  • Less than 5%*:  3.30%
  • 5% but less than 10%:  1.50%
  • 10% or more:  1.25%

VA Funding Fees for Reservist/National Guard 

First Time Use

Downpayment:

  • Less than 5%*:  2.40%
  • 5% but less than 10%:  1.75%
  • 10% or more:  1.50%    

Second and Subsequent Use

Downpayment:

  • Less than 5%*:  3.30%
  • 5% but less than 10%:  1.75%
  • 10% or more:  1.50%

Interest Rate Reductions (IRRL) are remaining at 0.50%.

I am happy to help you with your VA loan for your home located anywhere in Washington State.  A heartfelt thank you to those who have served our country.