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VA Loan Limit Increased in Orange County

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Effective August 6th, 2012 the maximum VA loan limit in Orange County, CA increased from $621,000 to $675,000. This boost is good through December 31, 2012. But it’s not temporary. VA is reverting to the method of basing county limits on median home prices. 2013 limits will be posted once median price data comes in from the Federal Housing Finance Agency.

Other California counties received bumps to their VA loan limit. Los Angeles County went from $621,000 to $675,000. San Diego County went from $477,000 to $518,750. But our neighbors to the north saw the most significant surge in VA loan limit. Counties like San Francisco, San Mateo, Marin, Alameda and Contra Costa now have a $1,000,000 maximum VA loan limit. This is a 60% increase. The previous VA loan limit in these counties was $625,500. This means that a veteran can get 100% financing on a property up to $1,000,000. To see the full list of VA loan limits by county click here.

Based on the median price data Orange County residents can get 100% VA financing up to $675,000. But OC homeowners can get loans larger than this amount. The VA guarantees 25% of the maximum loan amount. If the veteran is willing to personally guarantee the amount above $675,000 then they can get that loan.

How do they personally guarantee? For every dollar borrowed above $675,000 the borrower would need to put down $0.25. Need an extra $10,000? You’ll need a down payment of $2,500.

These VA loan limit changes stem from a new law – Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012. This law does many things for veterans. You can read the full body of it here.

Surviving Spouses/Family Back Home/VA ARM Loans

In addition to the VA loan limit increases, this law makes other significant changes to the VA housing benefits for veterans.

  1. The new law now allows the spouse of a deceased service member/veteran/POW access to a VA loan. The spouse is eligible for 10 years past the death of the service member.
  2. In addition, the law expands the occupancy requirements for active service members. It allows children or a spouse to live in the home, while the service member is deployed, to fulfill the occupancy requirement.
  3. Adjustable Rate Mortgages (ARM) are now a permanent VA program.
  4. Hybrid ARM’s are now a permanent VA program.

For more information regarding VA home loans or to get a VA home loan quote, contact me.

Scott Storace

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