FHA and VA Increase Loan Limits for 2017

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FHA and VA increase loan limits for 2017

 

Last week, we announced the news that the FHFA increased conforming loan limits. As a result, the Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) have also increased the limits for FHA loans and VA loans, respectively.

FHA loan limits have increased from $271,050 to $275,665. These new loan limits apply to FHA-insured loans that have an application date of January 1, 2017 or later.
VA loan limits will follow the new limits set for Fannie Mae and Freddie Mac conforming loans. The VA will use these limits to determine how much of the loan they will guaranty and how much an eligible veteran can borrow without requiring a down payment. Veterans should consult their loan officer for further details. You can also visit the Department of Veteran Affairs website for additional information about VA home loans.

A loan limits will follow the new limits set for Fannie Mae and Freddie Mac conforming loans. The VA will use these limits to determine how much of the loan they will guaranty and how much an eligible veteran can borrow without requiring a down payment. Veterans should consult their loan officer for further details. You can also visit the Department of Veteran Affairs website for additional information about VA home loans.

If you are looking to buy a home in 2017, this is excellent news for you! With rising home prices and the market’s return to pre-recession growth, the loan limit increase signifies a growing market. Many homebuyers will now be able to afford larger homes or homes in more expensive areas with better loan terms. If you need help getting started on your home loan journey, check out our blog for more details on the home buying process, FHA loans, and VA loans.

 

 

VA Mortgage Loan Program Changes

VA Mortgage Loans Change

Changes to VA Home Loan Guarantee Program will help more veterans.

VA (Veterans Affairs) mortgage loans will undergo some big changes thanks to bipartisan legislation that President Obama recently signed into law. The changes will further assist surviving spouses, married military couples, single-parent service members and veterans with disabilities. Let’s look at how this bill will help our nation’s veterans and their families:

VA Funding Fee

The VA applies a mandatory fee to all loans in order to keep the no-down payment program running. The VA waives the fee for borrowers with service-connected disabilities. This has caused problems for our veterans in the past who are waiting to receive a formal disability rating. New laws will exempt a service member from paying this fee as soon as a pre-discharge exam finds them eligible to receive disability compensation.

Surviving Spouses

Under current VA regulations, only surviving spouses of service members who die in the line of duty or as a result of a service-connected disability have access to the VA loan guarantee program. New rules will tweak the regulations so that veterans need only have had a permanent service-connect disability for at least ten years prior to death in order for a servicing spouse to qualify for home loan benefits.

Married Military Couples & Single Parents

VA purchase loans come with occupancy requirements that only military members or their spouses can fulfill. These loans are for primary residences, and borrowers typically have a set time after closing to occupy the home. This proves difficult for married military couples and single service members serving abroad. Under new legislation, a dependent military child would be able to satisfy the occupancy requirement for a parent or parents who can’t be there.

Adjustable Rate Mortgages

The VA has backed adjustable rate mortgages (ARMs) on and off for the last couple of decades. New regulation will make ARMs and hybrid ARMs permanent fixtures in the VA loan program.

Inlanta Mortgage is an agency-approved VA mortgage lender and is proud to assist our nation’s vets achieve the dream of homeownership. Find a licensed mortgage loan officer near you to discuss your home financing options as a U.S. military veteran.

To read more a out Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 visit the House Committee on Veterans Affairs.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.