VA Loans Exceeding County Loan Limits

VA loan limits vary by state and county. For most parts of the country, the VA loan limit is $417,000 unless you are located in a “high cost” area.

We are one of the few lenders that will allow for VA loans in excess of the county loan limits.

We will allow for loan amounts up to $850,000 as long as the VA guarantee or a combination of the VA guarantee plus borrower down payment and/or equity are equal to at least 25% of the lesser of the sales price or subject property’s value as determined by the Notice of Value (NOV).

Let’s look at some examples:

Example 1

  • Property is located in a non-high cost area where the loan limit is $417,000, and the property value is $600,000.
  • Appraised value $600,000 x 25% = $150,000 (amount needed for VA guarantee + cash/equity)
  • VA Loan Limit $417,000 x 25% = $104,250 (VA Guarantee)
  • $150,000 – $104,250 = $45,750 (cash/equity needed)
  • Appraised value $600,000 – $45,750 = $554,250 Maximum Loan Amount

In this example, the VA loan could be used to purchase a $600,000 home with a $45,750 down payment. That works out to around 7.5% down payment on a Jumbo loan, which is nearly unheard of in today’s market. If this was a refinance, the homeowner could receive a loan for around 92.50% of the value of the home, and can obtain cash out to pay off debts or for any other reason.

Example 2

  • Property is located in a high cost area where the loan limit is $692,500, and the property value is $900,000.
  • Appraised value $900,000 x 25% = $225,000 (amount needed for VA guarantee + cash/equity)
  • VA Loan Limit $692,500 x 25% = $173,125 (VA Guarantee)
  • $225,000 – $173,125 = $51,875 (cash/equity needed)
  • Appraised value $900,000 – $51,875 = $848,125 Maximum Loan Amount

In this example, the VA loan could be used to purchase a $900,000 home with a $51,875 down payment. That works out to around a 5.5% down payment on a Jumbo loan, which is nearly unheard of in today’s market. If this was a refinance, the homeowner could receive a loan for around 94.50% of the value of the home, and can obtain cash out to pay off debts or for any other reason.

To check the VA County Limits in your area, see the VA Loan Limits section.

Want more information on VA loans exceeding county limits?

Contact us today to receive more information.

Ready to apply?

We will contact you within 24 hours to review your options.