Higher limits for VA home loan program.Veterans and their families now have a greater chance to make their dreams of home ownership a reality, thanks to an increase in the Department of Veterans Affairs home loan guaranty limit. Effective Jan. 1, changes in the loan guaranty limit means veterans will be able to get no-down payment loans up to $417,000. The previous ceiling was $359,650. The Veterans Benefits Improvement Act of 2004 tied increases in the VA guaranty to the Federal Home Loan Mortgage Corporation's conforming loan Conforming Loan A conventional mortgage under $203,150 that conforms to the loan amounts and mortgage guidelines used by Fannie Mae and/or Freddie Mac.Notes: Conventional mortgages or conforming loans are classified as non-conforming or jumbo loans when the amount of the loan exceeds $203,150. See also: Conventional Mortgage, Fannie Mae, Freddie Mac, Loan limit, allowing VA to keep pace with rising home values. VA-guaranteed home loans are made by banks and mortgage companies to veterans, service members and reservists. With VA guaranteeing a portion of the loan, veterans can receive a competitive interest rate without making a down payment, making it easier to buy a home. |
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