Good News for Vets!
The Department of Veteran Affairs has raised the loan limits for VA loans in the MD Suburbs of DC to $812,500. This is a huge plus for Vets!
This increase is only available for purchase (not refinances) and the loan limits vary by jurisdiction. For instance, the new loan limits are good for Prince George’s County and Montgomery County in the Washington, DC Metro area. However, the limit is $537,500 in Anne Arundel County and Howard County (both can be considered to be in the MD Suburbs of DC although they are a bit farther out).
Still, this is a far cry from the $417,000 it used to be. What this means for Vets is that they can now purchase virtually any home in the area with zero down payment and a preferential interest rate. In today’s housing environment, Sellers are likely to contribute most, if not all, of the Buyer’s closing costs. So it’s possible that there is little to no money out-of-pocket to purchase your next home.
What’s The Catch
There are a few things to think about:
- These new loan limits are only in place through the end of 2009. It’s anyone’s guess whether or not they’ll be made permanent. It does give you time to search for a home and buy one. For now, the new limits are only temporary.
- It will increase the size of you monthly mortgage payment vs putting money down. This is just simple math. The more you put down, the less your loan, the smaller your monthly mortgage payment.
- You still have to qualify for the mortgage. This means that you have to have all your documentation in order and your income and debt and credit need to be able to convince a lender that you can repay the mortgage for the house you want to buy. It’s not a free pass.
However, if you’re a Vet, it now opens a whole new world of potential homes that are available for the VA Loan Program without having to pay a “penalty” of a higher interest rate because of the sales price of the house. This new loan limit combined with fantastically low interest rates makes buying a home for Veterans that much more attractive.
If you’re interested in seeing if you qualify for a VA Loan or want to know what type of documentation you need to qualify, just shoot me an e-mail or call me at 240-417-9100.
January 11th, 2009 at 12:43 pm
Ken,
Borrowers with VA eligibility are an untapped source for new home purchases. One of the problems is that vets who are eligible don’t know about the new loan linits. We need to educate them about this great benefit.
January 11th, 2009 at 3:58 pm
Amen to that! Getting the word out is important and part of what I try to do on the Blog! Thanks for visiting!
March 31st, 2009 at 2:52 pm
This SHOULD be a great deal, however, we’ve had two financial institutions this week that have told us they will only go to the OLD rate of $417k. Anything above that amount (what isn’t in the DC Metro area) we have to pay upfront.
Any suggestions of a lender that will honor the increased amount – we only need $23k more!
March 31st, 2009 at 4:16 pm
VA loan limits vary depending on the state and county you are buying in. In the Washington DC metropolitan area some counties have a loan limit of $812,500 while others have a limit of $537,500. I lend to the maximum loan amount available. Here is a link to the VA loan limits for 2009 by state and county:
http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf
March 31st, 2009 at 9:38 pm
Thanks Alan – is there a link that has a phone number to contact you? If we send an email via the link you provided will you get it? We anticipate a response from the bank (short sale) this week so we’d really like to get this settled to make the process as smooth as possible.
March 31st, 2009 at 9:52 pm
Tina,
If you click on his name it should take you to his website (I double checked to make sure it was right). Toward the bottom of the page is his phone number — (301) 353-9360 and e-mail address — mtginfo@aol.com
Good luck to you!