by Tim Storm | Jan 6, 2016 | VA Home Loan
VA loan limits for 2016 in southern California were recently announced, and are mostly unchanged from the limits for 2015. The VA loan limit for Orange County in 2016 will be $625,500. Los Angeles will be the same. And while the $625,500 is great for most VA borrowers, it is important to know that it is possible to get a VA loan as high as $1,500,000, because $625,500 is the $o down payment 100% financing limit, not the total loan amount limit. VA 100% Financing Loan Limit When we say that the VA 100% financing loan limit for Orange County is $625,500, we mean that a California Veteran can purchase a home in Orange County for a price as high as $625,500 with No Down Payment. And in many cases the lender can even price the loan with a “lender credit” that will cover the closing costs so that the Veteran won’t funds to close. This works out to be an awesome loan program for those that are eligible. What about the Jumbo VA Loan Program? A Jumbo VA Loan occurs when a Veteran purchases a home for higher than the 100% financing limit (and wants to get the maximum loan amount possible. ) A small down payment is required equal to 25% of the difference between their “higher” purchase price and the 100% financing limit ($625,500 in Orange County). For example, if a Veteran purchases a home for $675,500, or an even $50,000 above the 100% financing limit, then they would need a down payment equal to $12,500. The resulting VA loan would be $663,000. The actual down...
