Loan Limits For VA Loans: What You Need To Know Before Getting Started

As the real estate market around the country continues to stay strong, qualifying for a mortgage for pricey property can set back any home search.

But what if you’re applying for a specific mortgage, like a VA loan?

In the case of VA loans, there are some limits to know about, as they affect different parts of the country in different ways.

The Maximum Guaranty

In 2018, the maximum guaranty amount for a VA loan is $453,100. What does this mean? Basically, there is no maximum amount that you can borrow with a VA loan, but any amount above this $453,100 will not be guaranteed by the VA. You may be required to make a down payment to borrow more.

High-Cost Counties

However, the VA also recognizes that certain areas of the country are more expensive than others. While $453,100 will be the maximum guaranty in many places, some other locations give you more buying power due to higher costs, such as:

Los Angeles County (CA): $679,650

Marin County (CA): $679,650

Orange County (CA): $679,650

Washington, DC: $679,650

Honolulu (HI): $721,050

Baltimore County (MD): $517,500

New York Metro Area: $679,650

How To Make A Decision

Let’s say you found two properties that you’re interested in, one in a higher-cost county, and the other in a lower one. Assuming that everything about the two properties was the same, which would you choose?

It may be tempting to buy that more expensive home – after all, you have a mortgage allowing you to do so. But, you still need to consider costs like property taxes, in addition to the fact that you’ll still be paying more each month. It’s important to make the right decision for your finances, now and in the future, so consider any mortgage carefully.