Despite the numerous advantages provided by VA loans, out of the 16.4 million service personnel, only 12% take advantage of VA loans. This is because they are not sure about the rules and regulations associated with these loans. This is where mortgage loan experts can help. Mortgage specialists can provide expert information to make your process easier.
Why VA loans?
Home loans guaranteed by the Department of Veteran Affairs have grown in popularity in the recent years. The main advantage of this loan is that the VA agrees to cover up to 25% of the loan amount for lenders, if the borrower defaults in repaying the loan. This proves beneficial for homeowners as the protection allows lenders to offer competitive interest rates compared to conventional loans. If you are planning to apply for a VA loan in 2015, here are some essential loan limits that have been published by the Veteran Administration:
VA Loan Limits for 2015
The VA loan limit is the maximum that you can borrow without a down payment. Beyond the specified limit, borrowers have to pay a 25% down payment on any amount that is above the limit. The new VA loan limits came into effect on January 1, 2015. Depending on where borrowers live, they can expect variances in interest rates ranging from -42.8 percent to 8.1 percent. Though the standard limit for VA loans for most counties has remained the same ($417,000), the VA has established higher loan limits for high-cost areas.
The term “VA loan limit” can be a bit confusing for borrowers. This is because the VA does not limit you on how much you can borrow. It’s the figure that a VA-approved lender will determine depending on the eligibility, credit history and debt-to-income ratio of the borrower. The VA backs 25 percent of the loan limit for the lender in the county, region or a territory.
