VA Home Loan Limit Jumps 16%

Effective Jan. 1, 2006, the top limit for no-down-payment loans guaranteed by the Department of Veterans Affairs went from $359,650 to $417,000. The Veterans Benefits Improvement Act of 2004 links rises in the VA guaranty to increases in the Federal Home Loan Mortgage Corporation’s conforming loan limit. So when this limit increases, VA guaranty limits go up, allowing VA to keep pace with rising home values. VA-guaranteed home loans are made by banks and mortgage companies to veterans, service members and reservists. With VA guaranteeing part of the loan, veterans can get a competitive interest rate without making a down payment. For more information, visit http://www.homeloans.va.gov or call 1-800-827-1000.