2 0 1 9 VA L O A N L I M I T S
IN ARIZONA
VA loans are designed to make it easier for current service members and military veterans to qualify for buying a house.
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Since these loans are offered to anyone who fits the eligibility requirements, you get to enjoy benefits such as being able to skip making a down payment.
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You can also negotiate the interest rate on your loan and avoid paying mortgage insurance premiums.
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Yet, every good thing comes with a few stipulations.
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VA loan limits are one area where we find people tend to have a lot of questions.
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After all, no one wants to be told that their dream house costs more than the VA loan will cover
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There are also changes this year to the limits that could affect your home buying process.
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Being aware of the current limits and how the process works helps you make the best decisions as you start looking for a house.
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How Are Limits Determined?
Contrary to popular belief, the U.S. Department of Veterans Affairs does not set the limits for these types of loans.
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Instead, the loan limits this year are the same as the conforming mortgage loan limits that are set by the Federal Finance Housing Agency.
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You should know, however, that there are limits on how much liability the VA will assume for a loan, and this does have an effect upon how much money a lender offers veterans.
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How Often Do the Limits Increase?
This year is an exciting one for anyone interested in applying for a VA loan.
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That’s because 2019 brings another increase to the baseline limit.
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While the limits are assessed every year, it is never a guarantee that they will go up since they tend to follow the housing market and status of the economy.
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They have even gone down in some years, which means that it is best to utilize the higher limit now while you can.
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What Is the Current Limit on a VA H o m e L o a n ?
In 2018, the limit for a VA loan was $453,100. This year, the current limit for most of the United States is $484,350.
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This represents a 6.9% increase from the previous year!
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Keep in mind that there are certain high-cost counties that are given higher limits due to the rising cost of houses in those areas.
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Are Loan Limits the Same Throughout Arizona?
You can expect to see the same limits throughout the state.
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The majority of the counties affected by higher limits are in states such as Colorado and Alaska where the cost of living is higher.
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There, the higher limits help offset the more expensive loans that homebuyers in those counties must request.
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With the housing market in Arizona stabilizing, you can find many homes that fall within the designated limits.
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Is It Possible to Buy a House Above the Limit?
There are certain times when you may need to buy a house that is above the VA loan limit for Arizona counties.
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For instance, you may need to maintain a certain standard of living or prefer a specific location.
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In these cases, you still have options for buying your dream home.
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Typically, you will need to be willing to make a down payment to cover a portion of the additional cost that the limit does not cover.
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The limits placed on VA loans are there to help lenders feel comfortable making you a loan.
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Now that the limits are higher than ever, this is the best year to start looking for your new Arizona home.
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Jimmy Vercellino is one of the nation’s top VA Home Loan mortgage originators.
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A Marine veteran, he and his team work hard to help veterans take advantage of their VA loan benefit and become homeowners.
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