Los Angeles County is the largest county in California by population, and it’s easy to see why. Between the outdoor activities and bustling Los Angeles, you can’t go wrong buying or building a home in Los Angeles County.
If you’re a Veteran looking for a home in the LA area, you should know about changes coming to the VA loan limits in Los Angeles County. Read on to learn everything you need to know about the new VA loan limits and what they might mean for your home search.
Changes to the Los Angeles VA Loan Limit in 2020
The Los Angeles VA loan limit determines how much of a home loan a qualified military borrower could take out without a down payment. The limit was equal to the high balance conforming loan limit, which is $765,600 in Los Angeles County for 2020. It is worth note that, in 2020, any VA loans above $510,400 are considered jumbo VA loans. THIS SENTENCE WAS SIMPLY INCORRECT. Prior to the changes, a Veteran could borrow up to the high-balance limit without needing a down payment.
However, thanks to changes in the VA program guidelines, VA county loan limits are disappearing as of January 1, 2020. All homes, regardless of price, will be eligible for 100% financing for qualified Veterans with full VA loan entitlement.
What Do New VA Home Loan Limits Mean for You?
The removal of VA loan limits in Los Angeles County doesn’t guarantee you’ll be able to buy any home you want. You still need to meet your lender’s credit and underwriting requirements. The changes do make it easier to buy a home that you can afford, even if it falls over the high-balance conforming loan limit.
Conforming loan limits are still important when buying a home with a VA loan, even if you qualify for a zero-down mortgage. Your lender will use the traditional conforming loan limit to decide if you need a conforming VA loan or a jumbo VA loan.
Veterans with diminished VA loan entitlement are not eligible for the new VA loan limits. If you’re concerned about your eligibility for a VA loan in regards to the new changes, there may be options to restore your VA loan entitlement, such as refinancing your VA loan.
Other Changes to VA Loans in 2020
The VA loan limits in Los Angeles County aren’t the only changes to the VA program in 2020. The VA Funding Fee is also undergoing some changes. Active-duty Veterans are generally going to see a small increase in fees related to the Funding Fee. Reservists are likely to see a slight dip in the cost of fees. The changes also eliminate the VA Funding Fee for all Purple Heart recipients.
Purchase Your Home in Los Angeles County
Whether you’ve had your eye on a new home in Los Angeles County or are just starting the home buying process, SoCal VA Homes can help. Let us walk you through the new Los Angeles VA loan limit. Start by learning why we choose to work exclusively with Veterans to help you find your next home.