Tips & Special Topics
2011 VA Loan Limits Released by Veterans Affairs
Added January 13, 2011
On December 3, 2010 the U.S. Department of Veterans Affairs published its 2011 VA loan limits. The limits apply to VA home loans closed between January 1, 2011 and September 30, 2011. Though the VA establishes no maximum limit for their federally backed home loans, the limits are set each year for the purpose of establishing the VA’s maximum guarantee for each county.
There were no drastic changes for 2011 in the VA loan limits. In fact, the common VA loan limit is still $417,000 across the country. However, VA-eligible borrowers may notice some adjustments in the loan limits for high-cost counties. The changes, some more substantial than others, help bring the VA’s maximum guarantees in more expensive areas in line with current real estate markets.
In general, most high-cost counties where housing prices are more than the country’s average will have slightly higher VA loan limits for 2011. A qualified VA-eligible 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 no-money-down VA-guaranteed loan. It is feasible for VA-eligible borrowers to get more than the maximum guarantee published if they have cash toward the total amount.
The most significant increases in VA loan limits from 2010 to 2011 are found in areas of California, New Jersey, New York and Utah. For instance, Sonoma, Santa Barbara, Alpine, Yolo and Monterey Counties in California have higher loan limits in 2011 than in 2010. Practically all the New Jersey and New York counties on the list have significantly higher loan limits for 2011, up from $681,250 to $735,000. In Utah, the three counties listed (Salt Lake, Summit and Tooele) jumped from $516,250 in 2010 to $612,500 for 2011.
Of course, there are certain areas of the country where VA loan limits are down. No longer considered high cost counties in 2011 are Sacramento, El Dorado and Placer Counties in California. Also, Ouray and Hinsdale Counties in Colorado fell off the list. Finally, Greene County, Georgia is absent from the high-cost list for 2011.
While nearly 70 percent of the Virginia counties were removed from the high-cost county list for 2011, it’s interesting to note that the loan limit went up for most of the counties still considered in high-cost regions.
While some U.S. counties were deleted from the list of high-cost areas, others were added. This is a reflection of the market improving in these areas. For example, Boulder County, Colorado was added to the list of high-cost counties with a loan limit of $427,500. Also, Blaine County, Idaho was added to the list with a loan limit of $431,250. And, Barnstable County, Massachusetts has been added but is only slightly higher than the national average at $418,750.
You can contact an experienced VA loan professional for clarification on VA loan limits.
