Know your state’s VA home lending limits before you buy

Before you ask for the loan, many veterans ask if there are VA Home Loan lending limits?

The Veterans Benefits Act of 2004 increased the maximum guaranty amount of $60,000 for certain loans in excess of $144,000, to an amount equal to 25 percent of the Freddie Mac loan limit determined under the Federal Home Loan Mortgage Corporation Act for a single family residence, adjusted for the year involved.

For example, the maximum guaranty for 2008 is $104,250 - 25 percent of the 2008 Freddie Mac loan limit for a single family home costing $417,000.

So maximum eligibility for each veteran is $104,250; the maximum loan amount with no down payment is $417,000.

The lending limits vary by state. For the maximum allowable lending amount for your state, click your location below:

Recently, the signed Housing and Economic Recovery Act of 2008, Section 3221, calls for the Temporary Increase in Maximum Loan Guaranty Amount for Certain Housing Loans Guaranteed by the Secretary of Veterans Affairs.

So, for all locations in the United States other than Alaska and Hawaii, the maximum guaranty amount is 25% of the greater of either $417,000 or 125 percent of the area median price for a single-family home up to $729,750.

Some counties where this temporary increase would be allowable with no down payment required:

California Counties: Alameda, , Anaheim, Contra Costa, Los Angeles, Irvine, Oakland, San Benito, San Francisco, San Mateo, Santa Ana, Santa Cruz, Ventura and others. Maryland: Anne Arundel, Calvert, Carrol, Charles.

States with one increase or more include CT, DC, MA, NH, NJ, NY, VA.

So before you buy - be sure you're taking it to the limit with your VA Home Loan.

Happy home hunting!