The maxium VA Loan limit
Every year the Veterans Administration adjusts and revises the Maximum VA
loan limit at 100% financing for most of the counties in America. In
California there are 58 counties. Of those 58 counties, 24 of them have a
maximum VA loan limit at 100% financing of $417,000. Below is a list of the
other 34 California Counties whose maximum loan limit exceeds $417,000.
These are what are referred to as high cost areas. In fact in the entire US
California has 34 of the 235 High Cost Counties.
Now the question I often get is “What is the maximum VA loan amount as set
by the VA?”. Well to be honest the VA does not set a maximum loan amount.
That is determined by banking institutions that lend VA loans. What the VA
determines is the maximum VA Guarantee.
The Second question I often get regarding VA loans is, “What happens when
the sales price of a particular house is HIGHER than the maximum VA
guarantee in that specific county?”. Does this mean that qualified Veteran
cannot purchase that home? Or does it mean that if they want to buy that
home they have to put down the difference between the max VA Guarantee Limit
and the sales price.
The answer to both questions is easy: Its NO
Here is how it works. Say you have a borrower that wants to buy a home in
Alameda County for $650,000. The maximum VA guarantee in Alameda County is
$625,500. Here is how we determine how much is needed for down payment.
Take the sales price of $650,000 and subtract the maximum VA loan guarantee
of $625,500. This equals $24,500. Does the borrower need to bring in
$24,500? The answer again is NO. Remember VA really only guarantees 25% of
the loan. Thus in this case the borrower will need to bring in only 25% of
the DIFFERENCE which equals $6125.
So in actuality in this example a qualified Veteran can buy this $650,000
home for only $6125 in down payment.
This is one of the many benefits of buying a home with a VA Loan. Please
see the list below for all the High Cost Counties in California. Remember
if you do not see your county there then the max VA guarantee in your county
If you need help making this calculation feel free to message me here or
call/message me anytime via face book or directly at 619–454–0917.
California CA ALAMEDA $625,500
California CA ALPINE $463,450
California CA CONTRA COSTA $625,500
California CA EL DORADO $474,950
California CA LOS ANGELES $625,500
California CA MARIN $625,500
California CA MONO $529,000
California CA MONTEREY $529,000
California CA NAPA $625,500
California CA NEVADA $477,250
California CA ORANGE $625,500
California CA PLACER $474,950
California CA SACRAMENTO $474,950
California CA SAN BENITO $625,500
California CA SAN DIEGO $580,750
California CA SAN FRANCISCO $625,500
California CA SAN LUIS OBISPO $561,200
California CA SAN MATEO $625,500
California CA SANTA BARBARA $625,500
California CA SANTA CLARA $625,500
California CA SANTA CRUZ $625,500
California CA SONOMA $554,300
California CA VENTURA $603,750
California CA YOLO $474,950
If you have questions call me at 1 (800) 998–6821 or email me at email@example.com to see how much you can SAVE per month in your monthly bills and to see how simple the process is.