The VA loan limits in Orange County for 2014 will be $687,500. The Veterans Administration recently announced the 2014 VA loan limits and many counties in California saw an increase due to the improved real estate market and higher home prices in 2013. While most of the country, including many counties in California, will continue to have their limit set at the Conforming limit of $417,000, “higher priced” counties have higher VA loan limits.
What Makes Orange County “High Priced”?
The obvious answer to the question of why Orange County qualifies for high loan limits than most of the country is because of the high average cost of a home compared to other areas. While the Median home price in Orange county is above $500,000, most of the country’s median price is under $400,000. Other counties surrounding Orange County also have higher limits, including Los Angeles ($687,500) and San Diego ($546,250). It is important to note that this limit is for 100% financing. It is still possible to get a VA loan that is above the 100% limit.
Jumbo VA Loan in Orange County
When a loan amount is above the 100% limit it is commonly known as a Jumbo VA loan. Since the VA loan limit in Orange County for 100% financing is $687,500, then an VA loan above that amount is considered to be a “Jumbo VA Loan“. If a Veteran is purchasing (or refinancing) a home in with a sales price (appraised value) above $668,750 and they intend to get maximum financing, then they will need a down payment equal to 25% of the difference between the 100% loan limit of the purchase price. For example, if a Veteran is buying a home in Irvine, CA for $787,500, or $100,000 above the VA loan limit, then the Veteran would need a down payment of $25,000. Only $25,000, or 3.17% down payment. There is no better loan program than VA when it comes to low down payment and competitive fixed interest rates.
The first step in determining whether a VA loan is right for you is to contact a local Orange County VA loan specialist. The VA loan officer should be able to prepare custom VA loan scenarios after a quick phone conversation. The scenarios will give a detailed breakdown of the purchase price, loan amount, and costs involved in the home buying process. Also, your Orange County VA loan specialist should also be able to provide a video explanation of the scenarios, which will help to understand the scenarios as well as share them with other family members or financial advisors.
Authored by Tim Storm, a California Mortgage Loan Officer MLO 223456 – Please contact my office at the Emery Financial. Direct line at 949-640-3102. www.OrangeCountyVALoans.comGoogle+