Good News For VA Buyers
Ginnie Mae has eliminated the VA loan limit effective
immediately. This will allow more veterans to utilize their
VA benefits and obtain affordable homeownership. The previous
limit was $417,000. Please note that Ginnie Mae still
requires that the amount of the veteran's available VA guaranty
plus the borrower's down payment must be at least 25% of the
lesser of the purchase price or the appraised value. VA has
not changed the veteran's maximum guaranty of $104,250 (first time
use). Therefore, if the veteran does not provide a down
payment, the maximum loan for the veteran would still be
$417,000. This is how it will work: Sales price of
$650,000 divided by 4 = $162,500 (this amount should be covered
with the maximum guaranty of $104,250); which would leave a down
payment of $58,250. This would be a 91% loan to value ratio
approximately.
Source: CTX Mortgage/Bailey/Skye
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