Tips & Special Topics
2010 VA Loan Limits
Added January 21, 2010 | Updated January 28, 2010
The U.S. Department of Veterans Affairs has released its 2010 VA loan limits. VA borrowers will see a slight adjustment in loan limits in high-cost counties bringing them in line with the current real estate market and cost of living in those counties.
The VA Loan Guaranty Program does not actually impose a maximum loan amount for an eligible borrower. However, county “limits” are published by the VA in order to calculate the maximum guaranty the VA will provide per borrower for a particular county. Typically, lenders require a guaranty of 25 percent of the loan amount on a no-money-down VA loan. The maximum guaranty amount for loans over $144,000 is 25 percent of the VA loan county limit. So a qualified borrower with full entitlement may borrow up to the county limit with no money down. The term “limit” refers only to the maximum loan amount on a zero-down loan; it can be possible to borrow more than the published limit if money is put down on the property.
If a VA-eligible borrower has only partial entitlement due to past usage of VA home loan benefits without entitlement being restored, the maximum guaranty amount is reduced.
VA borrowers can expect most limits in 2010 to be the same, including the $417,000 maximum guaranty that applies to all U.S. counties that are not in the high-cost category. All high-cost counties in Alaska still have a maximum limit of $625,500. Counties like Nantucket, which had a maximum VA loan limit of $1,092,625 is also the same for 2010.
However, there are certain U.S. counties where the limits have gone down slightly. Take California for example. In 2009, the maximum guaranty in several high-cost counties was $1,094,625. In 2010, the highest loan limit in highest-cost counties like Alameda, Contra Costa and San Francisco is $962,500. Other California counties are also down considerably across the state. This change reflects a down California real estate market.
Another county where the VA maximum guaranty is down considerably is Teton County, Idaho. There, the loan limit fell from $1,000,000 to $703,750.
Some counties in Colorado are also down; however, the maximum guaranty in San Miguel County actually went up from $962,500 to $1,094,625. San Miguel County is where the rugged and scenic mountain resort communities of Telluride and Mountain Village are located. And, real estate markets are up there.
As the maximum guaranty for most U.S. counties remains $417,000 from last year, some U.S. counties that were considered high-cost is 2009 have fallen off the chart completely and are now grouped with the majority of U.S. counties with a limit of $417,000.
The 2010 VA county loan limits are effective January 1 through December 31 of that year. Contact a VA home loan professional for more information.
View a list of all the 2010 VA loan limits by county.
