The Department of Veterans Affairs (VA) has announced the 2018 loan limits in VA Circular 26-17-41 issued December 12, 2017. The new loan limits are effective for VA loans funding on and after January 2, 2018.

VA loan limits for 2018 will match conventional loan limits as set by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac.

As a reminder, VA does not impose maximum loan amounts. The county limits are used to calculate the maximum guaranty amount (see “NOTE” below). Loan amounts that exceed the county limit will require a down payment from the borrower.

Actual loan limits for certain high-cost areas may be lower than the maximum loan amount listed above. The complete list of counties, including high-cost counties and their specific maximum loan limit, may be viewed at FHFA.

NOTE:   When determining the VA guaranty, the one unit column limit on the FHFA Table is used to determine the applicable guaranty (e.g. if a veteran is purchasing a 4-unit dwelling for $700,000 in a county where the 1-unit limit is $453,100, VA’s maximum guaranty amount would be 25% of $453,100)

Reminder:  County limits do NOT apply to IRRRLs.

If you have any questions, please contact your Account Executive.