Good News for active duty and retired military persons qualified for VA Home Loans in Franklin and Williamson County, Tennessee.
For 2018 the VA loan limit has been increased from $453,100 to $494,500, an increase of $41,400 due to the township of Franklin and Williamson County being a high-cost area.
The maximum conforming VA loan limits for mortgages acquired by Fannie Mae and Freddie Mac are determined by the Federal Housing Finance Agency (FHFA).
2018 VA Loan limits apply to all loans closed January 1, 2018, through December 31, 2018.
These limits apply to most military borrowers. These increased VA loan limits are intended to allow military borrowers in more expensive loan markets to borrow more without having to put any money down. In most markets, the VA loan limit is $453,100.
The Veterans Affairs is not set a cap on how much you can borrow to finance your home, however, there are limits on the amount of liability that the VA can assume. This will affect the amount of money you can actually borrow. According to the new rules, the 2018 loan limits at the same as the Federal housing finance agency’s limits, which went into effect January 1, 2018. [Source]
Veterans who had a previous VA loan can still have the remaining entitlement to use for another VA loan. Most lenders require that a combination of the guaranty entitlement and any cash down payment must equal at least 25% of the reasonable value or sales price of the property. Borrowers can also combine a down payment with the remaining entitlement for a larger loan amount.
This means that if you’ve been waiting for markets to shake off the recession, this might be the sign you need. For the second time since the housing crisis, the FHFA has raised the maximum conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac. And this is cause for great celebration for borrowers. Over the last couple of years, the average US housing value has remained stagnant but now, the home price index clearly shows the average home prices have increased higher than they were in 2007.
If you’d like more information about these increases or to find out if you qualify give us a call. We deal specifically with VA loans and veteran homebuyers.