100% VA Home Loans
The VA loan is truly one of the best benefits offered to our Veterans, and I’m happy they’re available to men and women who have served us by protecting our freedoms. VA mortgage loans have many benefits besides the no-down payment feature, making them truly 100% home loans for Veterans.
Although VA guaranteed loans do not have a maximum dollar amount, lenders must limit the size of those loans to the maximums prescribed by GNMA (Ginnie Mae) if they plan to sell those VA loans in the secondary market.
Explaining VA Loan Limits
Federal law was passed in 2008 which temporarily boosted the VA’s limits to help spur economic recovery. That law expired at the end of 2014, and there’s currently no indication that it’ll be renewed.
The VA’s 2015 loan limits are now tied to the conforming loan limits set by the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac. Today’s loan limits for VA loans is $625,500.00, nationwide. For Frederick County and Montgomery County Maryland, the VA limit is $625,500. The limit is $517,500 in Carroll and Howard Counties, and the Washington County limit is $417,000. You can check your county’s loan limits on the FHFA.gov website.
The VA loan limits are a bit different than what most people understand about loan limits. The VA limits represent how much you can borrow before having to factor in a down payment. Qualified borrowers in Frederick County can obtain up to $625,500 without having to make a down payment. Down payments aren’t required on VA loans unless you seek a loan amount above the county loan limit. With the median single-family home price of $325,000, in Frederick County, most VA borrowers have no need for a down payment.
The VA borrower must still qualify for the loan amount they are seeking. The VA limit allows buyers great freedom in choosing their home in Frederick County. Other features of the VA loan include:
- VA home loans are easier to qualify for than most conventional loans.
- These loans are guaranteed by the Department of Veterans Affairs. Only active duty and military veterans can use this loan.
- VA loans permit borrowers to devote approximately 30-35% of their gross monthly income to housing. These loan limits change from time to time.
- They don’t require private mortgage insurance, reducing the monthly payment by a sizable amount.
- Sellers can contribute up to 6% towards the buyer’s closing costs, helping the buyer with little cash
- They don’t have a pre-payment penalty, giving the homeowner more freedom
- VA home loans are assumable, meaning the next buyer of the home can assume the mortgage, if qualified. This aspect of a loan is often overlooked, but it will be valuable when the homeowner wants to put the home on the market in the future. Rates are most likely to be higher in the near future, making an assumable mortgage more desirable when the rates are 1, 2 or 3% higher in a future real estate market.
As BRAC, the Defense Base Closure and Realignment Commission, is moving home buyers to Military bases in Maryland, the Highland Group is ready to help our military personnel, Army, Navy, Marine, Coast Guard Service members find their home of choice in Maryland. The local base in Frederick, Fort Detrick, is expanding, and military personel are moving to central Maryland, and Frederick County in specific. 100% home loans for Veterans are offered in Frederick County.
Contact us for a list of preferred VA Lenders for 100% loans for Veterans.
Cities in Frederick County
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