VA home loan limit rises to $417k

[thedrifter]

December 02, 2005
VA home loan limit rises to $417k
By Rick Maze
Times staff writer

Starting Jan. 1, current and former service members using the veterans’ home loan program can buy homes valued at up to $417,000 without a down payment.

That is an increase of about 16 percent from the current loan limit of $359,650.

Because homebuyers often pay the VA’s loan origination fee, which ranges from 1.25 percent to 3 percent of the value of the home, as well as some other closing costs, the new loan limit does not necessarily mean a $417,000 home can be purchased with no down payment in all instances, however.

Loan origination fees are based on several factors, including whether a down payment is made and whether the buyer is using the loan program for the first time. Fees are lower when a down payment is made, and are higher for those who previously used the loan program to purchase a home.

The increase results from the Veterans Benefits Act of 2004, which linked the veterans’ loan limit to the loans available for a single-family home under the Federal Home Loan Mortgage Corporation Act, known as Freddie Mac. Until that law was enacted, the loan limit could increase only through an act of Congress.

The higher loan limit will apply to loans that go to closing on or after Jan. 1.

Ellie

[jdtucker0193]

Just a quick note, Ellie

Remember, if a veteran has a 10% or more service connected disability from the VA, the loan origination fee is waived.

Just another benefit from a greatful nation to its Veterans.

[hrscowboy]

Yeah but what vet wants to make payments on a 417,000 loan not me..

[jdtucker0193]

The key to making those kinds of mortgage payments is to be successful enough to be able to make them.

Our military service provides an opportunity not to have to make a down payment or pay higher rates than others, since we have not established residency in a particular place or work history.

It is still our good credit history that allows us to purchase a home, but the Veterans Administration program streamlines that process.

Jim

[hrscowboy]

Jim at 417,000 thats a 4,170.00 a month house payment even on a 30 year note.

[Former0352]

Jim at 417,000 thats a 4,170.00 a month house payment even on a 30 year note.

I am not sure what kind of interest rate you are working with but it sucks. If I would go by my loan rate(4.75) the payment would be 2,175.

I guess the VA is finally realizing that even 359,000 is still not enough for places like California where, correct me if I am wrong, the majority of Veterans live.

S/F

[hrscowboy]

that was 10 loan rate which i wasnt thinking about the lowered rate at the time but even at your loan rate thats still a hell of alot of money a month for a house payment. I guess i am spoiled with a 100,000 dollar home and my payment has been 310.00 a month and in 2 months its mine...

[Former0352]

Unfortunatly for me it is the reality of home ownership in some states now, especially the ones I want to live in.

[ivalis]

perhaps a plurality of veterans live in california, certainly not a majority.

[hrscowboy]

Sometimes people cant afford to live where they want too thats why so many are in financial problems..

[Former0352]

I just found the last census done by the VA and California(2.3 Million) does lead in Veterans followed by Florida(1.77 Mil) and Texas(1.71 Mil) in a close third.

[Former0352]

Sometimes people cant afford to live where they want too thats why so many are in financial problems..
I have seen that happen to a lot of people in the places I have lived and that is why for now I am in a 4th choice on my places I want to live, but once I win the Mega Million lottery I am moving back to Vail CO and will finally be able to afford a place there. ;)

[ivalis]

like i said, a plurality may live in california, not a majority.

just a pet peve of mine, like confusing median with average

[greensideout]

Just a comment to show where we have gone to with the expections of what we require in a home.
I took a VA direct loan on my first home when I was discharged from the Corps. It was at 8 percent interest. The amount was $6700. The home had one bedroom and bath. It was a country kitchen/livingroom. When the first child came I remodeled it to make two bedrooms. I later added a dinning room addition. We then later built another home and moved on from there.
No, this was not the 1800's---lol---it was 1965.
I might be the only one on this site that thinks that the expectations of what is needed for a home now is beyond reason!---$417,000?

[hrscowboy]

you gave 6700 in 1965 GSO and what do you think that house is worth today?

[Former0352]

Just a comment to show where we have gone to with the expections of what we require in a home.
I took a VA direct loan on my first home when I was discharged from the Corps. It was at 8 percent interest. The amount was $6700. The home had one bedroom and bath. It was a country kitchen/livingroom. When the first child came I remodeled it to make two bedrooms. I later added a dinning room addition. We then later built another home and moved on from there.
No, this was not the 1800's---lol---it was 1965.
I might be the only one on this site that thinks that the expectations of what is needed for a home now is beyond reason!---$417,000?


If you want to go that route with the thinking. My parents bought the house I grew up (Ventura County CA.) in in 1960 for 23,000 my brother just had it apraised about 6 months ago because he thought he might have to move and it was apraised at 625,000. It is not anything special just a 4 bdrm track home from the 60's but it just shows if I wanted to move back to the place I grew up it would be very hard to afford a place there. If the VA wants to offer the higher amount it is a very good thing, remember the person still has to qualify for it, they just don't give the loan away.

[jryanjack]

$417,000 would not get you much around Philly, at least not within over an hour's driving time from downtown. And Philly's really pretty reasonable - before moving here we lived in Alexandria, VA. Had a 1300 square foot condo, bought it for 90k in 1995, sold it for 150k in 2000, and the people we sold it to sold it for 300k last year! Pretty much its all location, location, location.