What You Need to Know about VA Loan Limits in 2021: Our Guide
If you are a veteran or active duty member of the armed forces, you can take advantage of VA loans. For instance, you can use it on mortgage loans in Ewa Beach to move into a home in Hawaii without any down payment.
A VA loan limit is a monetary cap that refers to the maximum amount you can borrow from the Department of Veterans Affairs to purchase or refinance your home without making a down payment. Last December 2020, the Federal Housing Administration announced that the mortgage limit would increase to conforming VA loans in 2021.
Understanding mortgage loan limits can help you learn more about your benefits and enjoy them to the fullest. Use this guide to learn more about VA loan limits this year.
How Can an Increased Loan Limit Affect Me?
Increased conforming loan limits help you become more empowered. If you already own a home, you can make more cash out of your home’s equity. You can also borrow a higher loan amount and bring as little as three percent down. This way, you can fulfill your dream of owning your ideal home much faster.
Am I Subject to VA Loan Limits?
You will be subject to loan limits if you are a service member or veteran with one or more active VA loans or you have defaulted on a VA loan. This year’s limit is 548,250 dollars for a single-family residence in typical U.S. counties, which means VA loan borrowers can borrow a maximum of that amount.
On the other hand, high-cost areas like Hawaii have 822,375 dollars as a conforming loan limit. This higher limit is established for one-unit residential houses. This increase of more than five percent reflects the increase in the average home value in the country.
Can My VA Loan Limits Restrict Me from How Much I Can Borrow?
Being subject to VA loan limits does not mean you have to say goodbye to a property you love and afford. You can still get a VA loan if it is over the county limit. All you need to do is make the required down payment, which will be subject to a formula based on your home price and entitlement.
Understanding this real estate process can be challenging, especially on your own. Consider seeking expert advice from professional mortgage brokers to have a better understanding of VA loan limits.
When Do These VA Limits Apply to My Mortgage?
The FHFA sets the loan limits for conforming to conventional loans purchased by the government-sponsored entities Fannie Mae and Freddie Mac. The VA also follows these guidelines for loan limits. These changes are effective for loans closing after January 1, 2021.
Hi Velocity Mortgage: Ewa Beach VA Loan Experts
Being eligible for a VA loan allows you to enjoy the benefit of having an easier time buying a home and reach your homeownership goal more quickly because you usually don’t have to make a down payment. If you plan to secure a VA loan this year, make sure to understand and remember the VA loan limits stated above and determine whether you are subject to these limits.
Become a homeowner in Hawaii this year by seeking help from our mortgage company in Ewa Beach. At HI Velocity Mortgage, we are experienced mortgage brokers committed to helping you throughout your home buying process. Contact us at (808) 727-1055 to request a free quote!