VA Home Loan Limits 2015

2015 VA Home Limit Changes

If you have a VA home loan or are planning on using a VA home loan to buy a home in 2015, you've likely being paying close attention to the news about the changes to 2015 VA home loan limits. There is a lot of confusion about what this means, so in this post, we'll explain what the proposed changes will mean and how this could impact you.

It's important to remember how the word "limit" is used when discussing VA home loans. When discussing VA home loans, limit does not refer to the amount of your VA home loan. The VA does not place limits on the amount you can borrow. Rather limit refers to the amount of liability the VA can assume or back. This limit does impact how much your lender will loan you - your lender wants to be confident that there are guarantees for the loan. The VA home loan limit varies based on where you live because this amount is tied to your house value.

What is changing for 2015?

The current law governing VA home loan limits is expiring on Dec. 31, 2014 and this means that new loan limits will go into effect on Jan. 1, 2015. These changes mean that depending on where you live, the VA home loan limits for your area can change by -42.8% to 8.1%. These are some big changes and it's important that you contact your lender to discuss how these changes will impact you. In general, most borrowers will be fine. But if you live in a high-cost area, you can and likely be impacted by these VA home loan limit changes.

Now there is a chance that these VA home loan limits won’t change - this is tied to a decision by Congress regarding the VA's authority on loan limits. If Congress does not take any action, then the VA home loan limits for 2015 will be changing.

If you do live in a county that is impacted by decreasing VA home loan limits, it's important to know that the VA will continue to honor the higher limit, assuming certain provisions are met. Contact us to find out if your VA home loan does meet these provisions - we'll review your situation and discuss the impacts to you.

What should you do?

The best thing to do is to call us and we’ll discuss these changes with you. Take a look at the table below to see if you might be impacted. Remember, even if there isn't a change to the limit in your county, it's always good to discuss your VA loan.  
County 2014 Limit 2015 Limit
Alameda $1,050,000 $625,500
Alpine $463,450 $463,450
Contra Costa $1,050,000 $625,500
El Dorado $474,950 $474,950
Los Angeles $687,500 $625,500
Marin $1,050,000 $625,500
Mono $529,000 $529,000
Monterey $500,000 $502,500
Napa $592,250 $615,250
Nevada $477,250 $477,250
Orange $687,500 $625,500
Placer $474,950 $474,950
Sacramento $474,950 $474,950
San Benito $827,500 $625,500
San Diego $546,250 $562,350
San Francisco $1,050,000 $625,500
San Luis Obispo $561,200 $561,200
San Mateo $1,050,000 $625,500
Santa Barbara $643,750 $625,500
Santa Clara $827,500 $625,500
Santa Cruz $681,250 $625,500
Sonoma $520,950 $520,950
Ventura $598,000 $603,750
Yolo $474,950 $474,950