No Limit on VA Loans! The County Limits Have Been Removed



Historically, if you were going to get a VA loan, you were going to be subject to a county loan limit. For example, in San Diego, that limit was $690,000. That doesn't mean that you couldn't get a VA loan that was larger than the $690,000, but every dollar that you took beyond that $690,000 limit, you were responsible for the guarantee that 25% of the loan that the VA is actually covering up until that limit.


As of January 1, 2020, everything changed. Now just based on your income and your debt-to-income ratio and your overall ability to qualify for a loan, you can get a very large VA loan, assuming it's something that you can qualify for.


There is still one thing to keep in mind— the difference between a conforming loan and a non-conforming loan. Since the VA loan is a government-backed loan it is considered a non-conforming loan. These types of loans have a limit that change every year, by city and state. Once you go over that limit on a VA loan, the only thing you're likely to see is going to be an increase in the rate that a lender is going to be able to give you. Now, this opens up a lot of new opportunities. You may even be able to go out and purchase a multifamily. We recently had a client who purchased a $1.8 million property using his VA loan entirely!


If you have any questions regarding the VA loan or the home buying process please reach out to a Sentry Residential agent.