Call us today: (949) 268-7742

New VA Loan Limits in Orange County

Are you looking for your next home in Orange County? Whether you plan to buy a home in Orange County or build your own, you should explore if the VA loan program is right for you.

The VA program helps eligible military members purchase or refinance a home with options for 100% financing and a guarantee from the VA. There are new changes to the Orange County VA loan limit set to take effect on January 1, 2020. Learn more about these upcoming changes and how they could potentially affect your home buying process in Orange County.

Changes to the Orange County VA Loan Limit

The Orange County VA loan limit used to constrict 100% financing to the old high-balance loan limit. This figure limited the amount of loan you could get with zero down payment. Due to the higher-priced homes in Orange County, the high-balance limit always exceeded the conforming VA home loan limit which applied to other nearby counties.

Starting January 1, 2020, VA loan limits are set to be eliminated for Veterans with full VA loan entitlement. Eligible Veterans may be able to receive 100% financing regardless of the purchase price of their home.

Veterans without full entitlement will still need to follow the conforming VA loan limits. You may be able to restore your VA loan entitlement. Speak with a VA loan program expert to see what options are available to you. A VA loan refinance could help you restore full entitlement so that you can take advantage of the Orange County VA loan limit 2019 to 2020 changes.

How Does This Differ from the Orange County VA Loan Limit in 2019?

The new Orange County VA loan limit rules make it possible for Veterans to get a higher-value home without needing a down payment. However, this change doesn’t automatically give you access to unlimited funds to purchase a home. You’ll still need to pass your lender’s credit and underwriting requirements.

The Orange County VA loan limit in 2019 followed the conforming high balance loan limits. In 2020, conforming high balance loan limits for Orange County are set to increase to $765,600 due to the high cost of living in the area. This limit will apply to conventional loan programs, but it is no longer relevant to VA loan borrowers.

While VA county loan limits are going away, your lender will still use loan limits to determine if you need a conforming VA loan or jumbo VA loan.

Other Changes to VA Loans

In addition to the Orange County VA loan limit, there are also small changes coming to VA loan guidelines in regards to the VA Funding Fee. Most active-duty military buyers are likely to see an increase in the fees they pay. On the other hand, most Reservists will see a slight drop in the cost of their fees. Additionally, Purple Heart recipients are now exempt from the VA Funding Fee. Previously, only Purple Heart recipients on disability were eligible for the exemption.

Take Advantage of the New Orange County VA Loan Limit

At SoCal VA Homes, we’re dedicated to helping Veterans purchase or build their dream home. Let us help you learn more about the VA loan changes. Get started finding your dream home in Orange County with SoCal VA Homes today.

Featured on the 5.00 O'Clock News

Innovators for Veterans Featured In