Posted on Feb 14, 2016
Is the proposed VA loan limit elimination a good idea?
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Good news or bad news?
I'm all for excellent benefits for our military community, but to guarantee a loan beyond $417,000 for those who may not be able to afford it sounds like risky business.
http://www.militarytimes.com/story/military/benefits/2016/02/12/va-home-loan-limit-would-end-under-proposed-law/80236662/
I'm all for excellent benefits for our military community, but to guarantee a loan beyond $417,000 for those who may not be able to afford it sounds like risky business.
http://www.militarytimes.com/story/military/benefits/2016/02/12/va-home-loan-limit-would-end-under-proposed-law/80236662/
Home Loan
Department of Veterans Affairs (VA)
Money
VA Loan
Finance
Edited 9 y ago
Posted 9 y ago
Responses: 16
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There already are exceptions for high cost areas, but I agree with removing the cap. Regardless of the cap, the veteran still needs to qualify for the mortgage with debt to income and other underwriting requirements. http://www.military.com/money/va-loans/home-purchase/va-loan-limits-for-high-cost-counties.html
Updated: VA Loan Limits for High-Cost Counties
The VA loan limit for 2016 is $417K. But it could actually be substantially more if you buy a home in a “high-cost” county.
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LTC Jason Strickland I think its ok, its based on your situation and finance. Veterans deserve all the limit they can get, their DUTY HONOR COUNTRY is priceless. You have to use COMMON sense and don't live above your means.
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As a reminder, while the VA guarranties the whole loan, technically they are on the hook for the "lost" portion of the loan. That is, what amount is not covered after the house sells for, and the associated cost of selling the house.
The vet still has to qualify for the loan, which means they are going to have to have the income stream available to support the higher loan amount. I don't believe a lot of vets are going to have that level of income, but for the few that do, the VA should be there for them.
The vet still has to qualify for the loan, which means they are going to have to have the income stream available to support the higher loan amount. I don't believe a lot of vets are going to have that level of income, but for the few that do, the VA should be there for them.
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