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VA High-Balance Loans
What are VA High-Balance Loans?
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“High balance” in the context of VA loans typically refers to the loan limits set by the Department of Veterans Affairs (VA) for a specific county. VA loans are designed to help eligible veterans, active-duty service members, and surviving spouses purchase or refinance a home with favorable terms.
The VA establishes loan limits based on the median home prices in each county. These limits represent the maximum amount that a veteran can borrow without making a down payment. If you’re referring to a “high balance” VA loan, it may mean that the loan amount exceeds the standard VA loan limit for that county.
It’s important to note that while VA loans do not have a maximum loan amount, they do have limits on the amount of liability the VA can assume, which influences the amount a lender is willing to lend without requiring a down payment. In areas where housing costs are higher, the VA allows for higher loan limits, and these are often referred to as “high balance” or “jumbo” VA loans.
If you’re considering a VA loan, it’s advisable to check the current loan limits for the specific county where you plan to purchase or refinance a home. Keep in mind that these limits can change annually based on the housing market conditions. Additionally, lenders may have their own requirements and may have different terms for high-balance VA loans. It’s recommended to consult with a knowledgeable mortgage professional or loan officer to get accurate and up-to-date information tailored to your specific situation.