2013 VA Program Changes

HomeBridge has revised the VA Standard program guidelines as detailed below:

  • The maximum loan amount may exceed the county limit as established by VA however the veteran will be required to make a down payment on loans exceeding the county limit to ensure a25% guaranty from VA.Example:
    Veteran has full entitlement available and is purchasing a home for $480,000 but the VA county loan limit is $417,000.

    • $417,000 multiplied by 25% = $104,250 (maximum guaranty and available entitlement)
    • $104,250 divided by $480,000 = 21.72% guaranty

    The VA guaranty is less than 25% (21.72%) so a down payment is required.

    • $480,000 (purchase price) multiplied by 25% = $120,000 (guaranty amount required)
    • $120,000 minus $104,250 = $15,750 required down payment.
  • When the purchase price does not exceed the county limit the veteran is not required to make a down payment. The total loan amount, including the VA funding fee, cannot exceed the maximum county loan limit established by VA.
  • HomeBridge limits the maximum loan amount on VA transactions to $1 million dollars.
  • Loan amounts exceeding $729,750 will require a minimum 680 credit score and 6 months PITI in reserves on both purchase and refinance transactions.
  • Cash-out transactions secured by property in Alaska or Hawaii with a 95% LTV, the maximum loan amount is $625,500.

The new guidelines are effective immediately.

The VA Standard matrix has been updated with this information and posted on the HomeBridge website at www.homebridgewholesale.com.

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