Is there a limit on VA Loans?
As with any traditional lending option, there are VA loan limits too. Let’s say you’ve narrowed down the possible choice on your new house to two beautiful homes in two different counties. Now, let’s talk about your VA loan limits and how they’ll translate in your mortgage.
One of the two homes you’ve found the most attractive resides in a county with a higher loan maximum than the other residence. This county, like many others across the nation, have higher real estate values than surrounding areas. For counties with higher real estate values, the loan maximum on a VA loan is limited to $625,500, meaning this is the highest amount Mutual of Omaha Mortgage can lend to you on your VA loan.
The other house, while just as gorgeous as the first, resides in a county with lower average real estate values. The VA loan limits on these counties is set at $417,000.
This isn’t meant as a deterrent; loan limits can end up saving you money. For instance, if there are not many noticeable differences between the floor plan or general layout of both houses in separate counties, the lower loan limit could mean you’ll require less financing without needing to sacrifice your specific housing goals.