Every year, the Department of Veterans Affairs recalculates the maximum guaranteed loan amounts for counties across the United States based on market conditions, home values, home sales. In California, 2011 saw some counties with VA loan limits as high as $1,000,000. This is all set to change in 2012 as the new VA loan limits have been announced.
Effective January 1, 2012, the new VA loan limits for California Counties have been lowered. The following chart shows the new loan limits for 2012. Any counties NOT SHOWN have loan limits set at $417,000.
| County | Limit |
| Alameda | $625,500 |
| Contra Costa | $625,500 |
| Los Angeles | $621,000 |
| Marin | $625,500 |
| Napa | $460,000 |
| Orange | $621,000 |
| San Benito | $625,50 |
| San Diego | $477,000 |
| San Francisco | $625,500 |
| San Luis Obispo | $457,700 |
| San Mateo | $625,500 |
| Santa Barbara | $598,000 |
| Santa Clara | $625,500 |
| Santa Cruz | $610,650 |
| Sonoma | $419,750 |
| Ventura | $518,650 |
At present, CalVet’s maximum loan limit is $521,250.
Though the VA loan limits have been adjusted downward, 100% financing is still available for all counties. And it is still possible to borrow MORE that the stated loan limits, but a down payment would be required.
In Orange County, a Veteran wants to buy a home in 2011 for $690,000. It was possible to do so because the VA loan limit in Orange County for 2011 was $700,000. Now that the new VA loan limits are in place, the Veteran cannot borrow 100% for that same property, as the new loan limit is $621,000. Instead, the Veteran would have to put 25% of the difference toward the down payment, and finance the remainder.
Interest rates are still incredibly low for VA loans and available homes are plentiful.
Give us a call if you have any questions about the new VA loan limits, or about the calculations mentioned here. 800-734-5572
