No VA Home Loan Limits started Jan. 1, 2020
As of Jan. 1, 2020, there are no VA Loan limits! If you have your full VA loan entitlement intact there are no loan limits anymore — you can still purchase with no money down and no PMI. If you have entitlement used, you can still utilize your VA benefit, but you are now subject to the county limit rule. You still have the ability to go over your remaining entitlement, but you are required to come in with a down payment of 25% of the difference over your remaining entitlement. Honolulu County limits if you have a portion of your entitlement used is $765,600.
For example: You purchase a home for $400,000. This leaves you with $365,600 of remaining entitlement. You live in your $400,000 home for one year, then, you rent it out and buy another home. The new home is purchased at $465,600 (which is $100,000 over your remaining entitlement), so you are required to come in with $25,000 down payment (25% of the difference over your remaining entitlement). Here’s the equation: $465,600 – $365,600 = $100,000 / 25% = $25,000.
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