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.
Happy New Year,
I am contemplating a return to the Tri Cities and would like to utilize my VA 0 down loan in the amount of $250,000 or less. My income is based of a civil service pension, social security and VA disability. The total gross amount I currently receive is $4,400 monthly. Am i going to be able to qualify for the VA (or any other)loan?
Thanks in advance,
Greg
Hi Greg, I wrote a post answering your question here: https://mortgageporter.com/2013/01/reader-question-do-i-qualify-for-a-va-loan.html
Bottom line, it looks like you would qualify if your monthly debt does not exceed $400 (we have some wiggle room here so I would need more details from you).
Happy New Year and THANK YOU for serving our country!