VA Mortgage Loans

VA LOAN LENDING LIMITS

MAXIMUM GUARANTY AMOUNT

The Veterans Benefits Act of 2004 was signed by the President on December 10, 2004. The law changes the maximum guaranty amount of $60,000, for certain loans in excess of $144,000, to an amount equal to 25 percent of t he Freddie Mac conforming loan limit determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a single family residence, as adjusted for the year involved.

To illustrate, the maximum guaranty for 2006 would be $104,250. This is for 25 percent of the 2006 Freddie Mac conforming loan limit for a single family residence of $417,000.

The maximum eligibility for each veteran is $104,250 and the maximum loan amount with no down payment is $417,000.

Eligible VA Mortgage Loan Purposes

You may use VA-guaranteed financing:

To buy a home.
To buy a townhouse or condominium unit in a project that has been approved by VA.
To build a home.
To repair, alter, or improve a home.
To simultaneously purchase and improve a home.
To improve a home through installment of a solar heating and/or cooling system or other energy efficient improvements.
To refinance an existing home loan.
To refinance an existing VA loan to reduce the interest rate and add energy efficiency improvements.
To buy a manufactured (mobile) home and/or lot.
To buy and improve a lot on which to place a manufactured home which you already own and occupy.
To refinance a manufactured home loan in order to acquire a lot.

Alex S. Watkins

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