2015 VA Guaranty Loan Limits Go Up & Down in California

2015 VA Loan Limit CaliforniaCalifornia’s 2015 VA Maximum Loan Guaranty Limits were just announced by the Department of Veteran Affairs.  The new loan limits reduce our Veterans loan purchasing power by as much as $424,500 in 11 of California’s high cost counties.  See VA Circular 26-14-39 for details.

What media outlets are not reporting is that the VA county loan limit actually INCREASED in 12 other counties throughout California.

==> Would You Like a VA No-No Mortgage?

The VA Has Loan Limits in Each County?

Yes, but technically, the VA doesn’t cap how much a Veteran can borrow or how much a bank can lend.  The VA loan limit determines how much of a down payment the Veteran needs when borrowing over the county loan limit.

For example: If the county VA loan limit is $417,000, and the Veteran is buying a $500,000 home, they’ll need to come in with 25% of the difference between $417,000 and $500,000.  So the VA loan down payment requirement would be $20,750 if the Veterean has full entitlement.

Did you know it’s possible to have more than one VA loan out at a time using 2nd tier entitlement?  Call me (951) 215-6119 or contact me here to confirm how much you can borrow with your VA entitlement and get an estimate to compare against other loan programs. 

Why Did the VA Reduce the Loan limits?

it wasn’t done to purposely harm veteran eligible home buyers or the real estate market.  The VA automatically defaulted to the Federal Housing Finance Administration’s conforming loan limits because Public Law 110-389 expires Dec. 31, 2014.  The FHFA Conforming loan limits range from $417,000 to $625,500 in high-cost-areas of California.

This change is helping VA borrowers in 12 other counties secure larger laon amounts (see below).

Good News if You Want to Refinance:

Interest Rate Reduction Refinance Loans (IRRRL VA Streamline) will NOT be subject to the new 2015 VA county loan limits.  The VA will continue to guarantee 25% of the principal balance on an IRRRL, regardless of whether the loan exceeds the limit for the particular county.  This does not apply to VA cash out refinance.

2015 VA County Loan Limits in California

Red = Counties where the VA loan limit was REDUCED
Blue = Counties where the VA loan limit INCREASED
California County2015 VA Loan Limit (1 unit)
Alameda County$625,500
Alpine County$463,450
Amador County$417,000
Butte County$417,000
Calaveras County$417,000
Colusa County$417,000
Contra Costa County$625,500
Del Norte County$417,000
El Dorado County$474,950
Fresno County$417,000
Glenn County$417,000
Humboldt County$417,000
Imperial County$417,000
Inyo County$417,500
Kern County$417,000
Kings County$417,000
Lake County$417,000
Lassen County$417,000
Los Angeles County$625,500
Madera County$417,000
Marin County$625,500
Mariposa County$417,000
Mendocino County$417,000
Merced County$417,000
Modoc County$417,000
Mono County$529,000
Monterey County$502,250
Napa County$615,250
Nevada County$477,250
Orange County$625,500
Placer County$474,950
Plumas County$417,000
Riverside County$417,000
Sacramento County$474,950
San Benito County$625,500
San Bernardino County$417,000
San Diego County$562,350
San Francisco County$625,500
San Joaquin County$417,000
San Luis Obispo County$561,200
San Mateo County$625,500
Santa Barbara County$603,750
Santa Clara County$625,500
Santa Cruz County$625,500
Shasta County$417,000
Sierra County$417,000
Siskiyou County$417,000
Solano County$417,000
Sonoma County$520,950
Stanislaus County$417,000
Sutter County$417,000
Tehama County$417,000
Trinity County$417,000
Tulare County$417,000
Tuolumne County$417,000
Ventura County$603,750
Yolo County$474,950
Yuba County$417,000


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