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The new maximum loan limits for Arizona are available now as a result of recently enacted VA benefits.   The previous loan limits on VA loans was $144,000.  However, loan limits in all Arizona counties, are now $417,000. 

More information on loan limits can be found at: 

http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

The new maximum loan limits for Alabama are available now as a result of recently enacted VA benefits.   The previous loan limits on VA loans was $144,000.  However, loan limits in all Alabama counties, are now $417,000. 

More information on loan limits can be found at: 

http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

The new maximum loan limits for Florida are available now as a result of recently enacted VA benefits.   The previous loan limits on VA loans was $144,000.  However, loan limits in all Florida counties, except the ones listed in the chart below, are now $417,000. 

The High Cost counties have maximum loan limits up to $575,000.  More information on loan limits can be found in the Bookmarks on the right side bar of this site labeled: VA Loan Limits.

The new maximum loan limits for Virginia are available now as a result of recently enacted VA benefits.   The previous loan limits on VA loans was $144,000.  However, loan limits in all Virginia counties, except the ones listed in the chart below, are now $417,000. 

The High Cost counties have maximum loan limits up to $1,094,625.  More information on loan limits can be found at: 

http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

 or on the link listed on this site on the sidebar to the right.

 The new maximum loan limits for Minnesota are available now as a result of recently enacted VA benefits.   The previous loan limits on VA loans was $144,000.  However, loan limits in all Minnesota counties, are now $417,000. 

More information on loan limits can be found at: 

http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

The new maximum loan limits for California are available now as a result of recently enacted VA benefits.   The previous loan limits on VA loans was $144,000.  However, loan limits in all California counties, except the ones listed in the chart below, are now $417,000. 

The High Cost counties have maximum loan limits up to $1,094,625.  More information on loan limits can be found at: 

http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

VA Has Increased Maximum Loan-To-Value and Increased Loan Sizes

It’s a one, two punch designed to knock out foreclosures! The VA has increased both the maximum Loan-To-Value limits and maximum loan sizes on home mortgages.

First, the maximum Loan-To-Value limit has been raised from 90 percent to 100 percent.  That means eligible Veterans and Military Spouses can tap into all of the equity in their home.  The VA Funding Fee will go on top of the mortgage so the actual Loan-To-Value will be something more like 102%.

Second, the maximum VA home mortgage limit was increased from $144,000 up to $729,750 (even higher for AK, HI and Virgin Islands) in some areas. 

Congress passed these two new benefits in the Veterans’ Benefits Improvement Act of 2008 in October.  These new benefits combine to make it possible for more Veteran home owners in subprime loans refinance to a new, lower interest rate, less risky, VA home mortgage.

The ability to access 100 percent of your home’s equity is a new benefit for Veterans.  It comes as a result of the Veterans’ Benefits Improvement Act of 2008.  Previously, a cash out VA refinance mortgage was limited to 90 percent of your home’s equity.  This mortgage is allowable for Veterans and Military Spouses who are currently in a conventional home loan and wish to access 100% of their home’s equity. 

Q:  Who is eligible for a VA 100 percent Cash Out Refinance?

A:  Veterans and Military Spouses who are currently in a conventional or subprime mortgage

Q:  What is the purpose of a VA 100 percent Cash Out Refinance?

A:  To enable Veterans and Military Spouses the ability to access 100% of their home’s equity.  To obtain low fixed rate financing and refinance out of a subprime loan to a safer, more affordable home loan

• The maximum guaranty loan-to-value (LTV) for a cash-out/regular refinance has increased from 90 percent to 100 percent. Borrowers may now get a cash-out refinance loan for up to 100 percent of the appraised value of a home.
• VA adjustable rate mortgage (ARM) and hybrid adjustable rate mortgage (HARM) programs are extended through September 30, 2012.
• The maximum guaranty for refinances also increased from $36,000 and is now the same as the maximum guaranty for purchase loans. The amount of the guaranty will depend on the location of the purchase transaction.
• The maximum amount the VA will guarantee has been extended until December 31, 2011. The guaranty amount varies depending on the location of the property but may reach up to 175 percent of the Freddie Mac conforming loan limits.

 

 

Housing in higher-cost regions can be more affordable to borrowers because the maximum amount the VA will guarantee is extended until 2011. The increased loan limit is $729,000 in most areas, yet the maximum amount can reach $1,094,625 in some counties, and in Alaska, Hawaii, Guam and the U.S. Virgin Islands it can go up to $1,641,937.50.

Another improvement in the bill is that it extends the VA’s authority to guarantee adjustable-rate mortgages. These mortgages typically have lower initial interest rates than fixed-rate mortgages, which help families who move frequently attain affordable housing. For those who currently have riskier loans, the increase in the maximum guaranty for regular refinances decreases the equity requirement and gives them the chance to refinance into safer, more affordable loans that are backed by the VA.

The House passed a contentious foreclosure prevention package which faced a veto threat from the White House and fierce negotiating in the Senate. The Senate worked on producing a similar bill that would lessen Administration opposition. Why the contention for the solution to a problem that just about everyone agrees we need? The bill enables the Federal Housing Administration (FHA) to insure up to $300 billion in new loans if lenders agree to reduce the mortgage principal. To qualify, the lender would have to cut the debt to no more than 85% of a home’s current appraised value. The Congressional Budget Office estimates such a measure would end up insuring 500,000 borrowers at a cost of $1.7 billion to taxpayers. This cost could weaken the FHA mortgage program. Supporters note that the program is limited to loans for owner-occupied residents, not speculators. They also make the case that lenders and investors would be taking a loss on every loan and that the borrower would be paying higher-than-usual premiums to the FHA to insure the loan. Negotiations are completed in the Senate and the final bill may contain additional provisions to bolster the housing market.

Tags: Foreclosures