VA loan limits work differently than conventional or FHA insured mortgages. If a Veteran elects to purchase a home with a sales price higher than the loan limit, they're down payment is 25% of the difference between the loan amount above and the sales price.
Below are the loan limits for VA loans in King County, Washington for 2012.
- King County: $458,850
If a Veteran elects to purchase a home with a sales price higher than the loan limit, they're down payment is 25% of the difference between the loan amount above and the sales price.
Example:
A veteran purchases a home in Kitsap county with a sales price of $879,000
$458,850 (King Co VA loan limit) x 25% = maximum guarantee and possible entitlement = $114,712.50.
$114,712.50 / $879,000 = 13%.
Since this is less than the 25% maximum guarantee, a down payment will be required.
$879,000 x 25% = $219,750.
$219,750 - $114,712.50 (maximum guarantee) = $105,037.50 required down payment.
The base loan amount for this scenario (not including the funding fee) is $773,962.50
A Veteran can purchase this home with 13% down payment!
Zero down loans are also available as long as the sales price does not exceed the VA loan limit.
Lenders have various limits as to how large of a VA loan they'll fund. This is one reason why it's great to work with a company like Landover Mortgage where we have several sources for government loans. If I can provide you a quote for a VA loan. please contact me at dianamerritt@landovermortgage.com.
No comments:
Post a Comment