PHOENIX, ARIZONA - - - Following last week's announcement from the Federal Housing Finance Agency (FHFA), the U.S. Department of Veteran Affairs (VA) announced today they will increase VA Loan limits on qualified veteran loans in accordance with the Federal conventional/conforming loan limits for 2017.
In response to rising home prices, FHFA raised loan limits for the first time in over a decade. The current conventional loan limit is $417,000. Loans exceeding that limit are considered "jumbo" mortgages and typically require larger down payments and more stringent underwriting. The current limit to stay out of "jumbo" territory is set to increase by $7,000 to just over $424,000 starting January 1, 2017.
The increase set by the VA will also take effect the first of the new year. The loan limit set by the VA is a maximum allowance and VA eligibility plays a part in the amount that can be borrowed without a down payment.
Although the VA does not set a cap on how much a veteran can borrow to finance their home, there are limits on the amount of liability the VA can assume, which can impact the amount of money an institution will lend you.
Loan limits are the amount a qualified veteran with full entitlement may be able to borrow without making a downpayment and vary by county.
Lenders generally will loan on VA without requiring a down payment as long as the veteran is income and credit qualified and the property appraises for asking price.
With a reported 6% increase in home prices, many real estate experts predict the changes will have a positive impact on the number of home buyers who can now afford a home by staying within the lower down payment loan programs.
Fairway Independent Mortgage Corporation is currently the only lender to train and certify its loan officers and Realtor partners as Military Mortgage Specialists.
For more information on Fairway's VA Loans, or to apply, contact a Fairway Independent Mortgage Branch near you to speak with an Arizona licensed loan officer.
*This article is not an offer to enter into an agreement. Not all customers qualify for the aforementioned programs. Fairway Independent Mortgage Corporation is an approved lender for the loan programs listed in this article. We do not represent any mentioned entities outside of loan origination.
About Fairway Independent Mortgage Corporation
Founded in 1996 by CEO Steve Jacobson, Fairway Independent Mortgage Corporation is a Top 10 ranked national mortgage lender. The company has more than 250 locations including several Arizona Mortgage Branches. At Fairway, customer service is a way of life. At Fairway speed of response is the goal, with some of the fastest turn times in the industry. The goal is to act as a trusted advisor, providing highly personalized service and helping through every step of the loan process. It’s all designed to exceed expectations, guarantee satisfaction and earn trust. For more information on Fairway Mortgage Arizona, please visit our website at www.FairwayArizona.com.
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