VA has not yet issued guidance for the 2022 loan limits, however it is anticipated that the 2022 conventional loan limits set by the Federal Housing Finance Agency (FHFA) for Fannie Mae/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 a Note date on and after January 1, 2022
Loan limits and entitlement requirements do not apply to IRRRLs
Important Reminders Regarding VA Guaranty and Homebridge VA Maximum Loan Amount
Brokers are encouraged to read the below information as it contains specific reminders regarding Homebridge requirements and VA maximum loan amounts
Loan Amount: First Time Use, Veteran has Full Entitlement or Full Entitlement will be Restored
While VA eliminated the use of county limits when determining the guaranty for Veterans with first time use, full entitlement, or full entitlement will be restored, with the Blue Water Navy Act, Homebridge applies the following to VA transactions with 100% financing for all LTVs:
- The maximum total loan amount for a VA loan is $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 > $1,500,000 to $2,000,000
- 1-unit transactions are subject to the following credit score and loan amount restrictions:
2-4 unit transactions are limited to the applicable county limit where the property is located even if the veteran has full entitlement/full entitlement restored/first time use:
Loan Amount: Veteran has Partial Entitlement, Entitlement Cannot be Restored, or the Loan Amount is ≤ $144,000
- 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” column on the FHFA Table is always used to determine the guaranty regardless of the number of units (i.e. the 1-unit county limit applies to all transactions regardless of the number of units)
2022 Loan Limit Eligibility
The 2022 loan limits may be applied to new submissions and loans currently in the pipeline however the loan must have a Note dated on or after January 1, 2022.
A manual lock will be required for transactions locked prior to January 1, 2022 using 2022 limits. The Lock Request Form is posted on the Forms page of the Homebridge website under General Forms.
In the event the loan has Note date prior to January 1, 2022 and the loan amount exceeds the 2022 limit, the loan will be re-priced as a high balance transaction.
The Homebridge VA guidelines will be updated and will be posted on the Homebridge website at www.HomebridgeWholesale.com; refer to the VA guideline version posted as “Transactions Using 2022 Loan Limits”
If you have any questions, please contact your Account Executive