VA Loan Limits for 2020

Brokers are encouraged to read this communication in its entirety as it contains specific Homebridge requirements regarding VA maximum loan amounts

The 2020 conventional loan limits set by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac will apply to VA loans when determining the maximum guaranty amount, if applicable

The new loan limits are effective for VA loans with closing (signing) on and after January 1, 2020

As a reminder, loan limits and entitlement changes do not apply to IRRRLs

Loan Amount: First Time Use, Veteran has Full Entitlement or Full Entitlement will be Restored

The Blue Water Navy Act of 2019 eliminated the use of county limits to determine the maximum guaranty for Veterans with full entitlement.

While VA has eliminated the use of county limits when determining the guaranty for Veterans with first time use, full entitlement, or full entitlement will be restored, Homebridge will apply the following to VA transactions with 100% financing for all LTVs:

  • The maximum total loan amount for a VA loan will be $1,500,000. Loan amounts  > $1,000,000 to $1,500,000 will require Homebridge management review and approval
  • Loan amounts up to $2,000,000 will be considered on a case-by-case basis with Homebridge management review and approval. A down payment, determined by Homebridge management, will be required on loan amounts greater than $1,500,000 to $2,000,000
  • 1-unit transactions will be subject to the following credit score and loan amount restrictions:

  • 2-4 unit transactions will be limited to the applicable county limit where the property is located even if the veteran has full entitlement/full entitlement restored/first time use:

*Actual loan limits for certain high-cost areas may be lower than the maximum loan amount listed above

To view Freddie Mac 2020 loan limits by county click here: Federal Housing Finance Agency

Loan Amount: Veteran has Partial Entitlement or Entitlement Cannot be Restored

There is no change to current VA policy for Veterans who have partial entitlement or entitlement cannot be restored:

  • County limits apply and are used to calculate the maximum guaranty amount
  • Loan amounts that exceed the applicable county limit will require a down payment from the Veteran
  • Homebridge limits the maximum loan amount to $1,000,000 excluding Hawaii; Hawaii maximum is $1,500,000

As a reminder, the loan amount under  “One-Unit Limit