Potential VA Loan applicants be aware,
The new limits for 2015 are out, and they now match the FHA limits:
The highest limit is now $625,000.
For most places there isn't a change (and a few places actually go up - San Diego county goes from $546,250 to $562,350)
BUT - in the highest cost areas the limits are going down, some as much as 40% . This can mean a significantly higher downpayment required.
For example, in these CA counties - Alameda, Contra Costa, Marin, San Francisco, San Mateo - the limit is dropping from $1,050,000 to $625,000. Since the borrower is responsible for 25% of the loan amount over the limit, the downpayment on a $1,000,000 house would go from $0 to $93,750. Wow.
And if you live in any of these areas, you know that $625,000 buys you a hovel by the interstate. In other words, access to the VA loan benefit is going away for the highest cost areas of the country.
You can still get a loan with 2014 limits if you get in contract and start the loan process before the end of the year.
Why did this happen?
The law allowing the higher limits for VA, which was passed in 2008, expires at the end of 2014, unless Congress extends it. Which they didn't. And then they went home for Christmas.
So move fast if you somewhere affected by this cut , and tell your Congressman to stop cutting yet another veterean's benefit.
Thank you for posting.
If you, or any other members worried about these changes, would like to talk to a specialist about these changes please do not hesitate to call and talk to a mortgage specialist at 1-800-531-USAA (8722)