As of now, VA loans have the same limits as conforming (Fannie Mae and Freddie Mac) loans.
But that’s going to change come January 1st, 2020.
As of that day, Veterans will be able to get a no-down payment mortgage backed by the VA anywhere in the US on any property that otherwise meets the VA’s standards. That is, unless we are talking about veterans who have one or more active VA loans or have defaulted on a previous loan. For those veterans loan limits will continue to apply.
This is thanks to the Blue Water Navy Vietnam Veterans Act of 2019, which Congress passed in June 2019.
The same Act increases the funding fee from 0.15% to 0.30% for Veterans and active service members. It also increases it for Reserves and National Guard members.
Two things to take away from this:
- If you’re a veteran or service member and are thinking about buying a house, buying before the year ends is going to save you money.
- If you’re looking to buy something that’s more than the current loan limit, waiting till next year is the way to go. If you can afford the down payment. Because, alas, affording the down payment remains,