The concept of Conforming Loan Limits began in 1970 with the Emergency Home Finance Act, which set the first limit at $33,000 for loans purchased by Fannie Mae and Freddie Mac. This act also introduced higher limits for high-cost areas such as Alaska, Hawaii, and Guam, and was later expanded to include the U.S. Virgin Islands.

Congress periodically raised these limits, tying them to housing price changes starting in 1980. The Housing and Community Development Act that year also introduced higher limits for multi-unit properties. By 1992, the term “conforming loan limit” was formally established.

In 2008, the Housing and Economic Recovery Act (HERA) granted the Federal Housing Finance Agency (FHFA) authority to adjust the limits annually based on changes in the national housing price index. These adjustments ensure the CLL reflects market conditions, with separate limits set for one- to four-unit properties.

No, VA loan limits are no longer tied to FHFA Conforming Loan Limits. Until January 1, 2020, VA loan limits matched the FHFA limits. However, the Blue Water Navy Vietnam Veterans Act of 2019 removed this restriction. As of January 1, 2020, veterans can obtain VA-backed home loans with no down payment, regardless of loan amount, in all areas. For more details, visit the VA’s Blue Water Navy Act page.
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No, FHA loans are not directly limited by FHFA Conforming Loan Limits but are influenced by them. FHA loan limits are determined based on median house prices in accordance with the National Housing Act. These limits fall between the low-cost area limit, set at 65% of the national conforming loan limit, and the high-cost area limit, set at 150% of the national conforming loan limit. For more details, refer to the applicable FHA Mortgagee Letter.

The USDA’s Rural Housing Services (RHS) has its own loan limits and requirements that vary depending on the program. For instance, the Single Family Housing Guaranteed Loan Program is for properties located in rural areas and has eligibility criteria based on factors like household size, income (below 115% of the area median), owner occupancy, and borrower immigration status. On the other hand, the Single Family Housing Direct Home Loan Program sets loan limits at no more than 80% of the local HUD 203(b) loan limit values. 
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A VA loan is a mortgage program created by the U.S. Department of Veterans Affairs to help Veterans, active-duty service members, and certain surviving spouses buy or refinance a home. Eligibility typically requires meeting one of the following conditions:

• Serving at least 90 consecutive days during wartime.
• Serving at least 181 consecutive days during peacetime.
• Completing six years of service in the National Guard or Reserves.
• Being the un-remarried surviving spouse of a service member who died in the line of duty or as a result of a service-connected disability.

Your lender can help confirm eligibility by obtaining your VA Certificate of Eligibility (COE).

No, one of the biggest benefits of a VA loan is the option to buy a home with no down payment, making homeownership more accessible to Veterans who may not have significant savings.

The VA funding fee is a one-time payment that helps keep the VA loan program running without requiring taxpayer funding. This fee is based on your loan amount, type of loan, and whether it’s your first time using your VA loan benefit.

For example:

• First-time use with no down payment: 2.3% of the loan amount.
• Subsequent use with no down payment: 3.6%.

If you have a service-related disability, you may be exempt from paying this fee. Additionally, the funding fee can be rolled into the loan amount instead of being paid upfront. – Source: VA.gov

Yes, VA loans offer several refinancing options:

• VA Streamline Refinance (IRRRL): Helps lower your interest rate or monthly payment with minimal paperwork and no appraisal required.
• VA Cash-Out Refinance: Lets you tap into your home equity to pay for expenses or refinance a non-VA loan into a VA loan.

Absolutely! The VA loan benefit is reusable as long as you meet the eligibility requirements and pay off any previous VA loan. You can also restore your benefit if you sell your home and pay off the loan completely.

No, VA loans are available to eligible Veterans and service members, whether they’re buying their first home or their fifth. There’s no limit to how many times you can use your VA loan benefit, provided you still qualify.

VA loans are intended for primary residences, meaning the home you plan to live in full-time. You cannot use a VA loan to purchase a vacation home or investment property.

VA loans can be used to buy a variety of property types, including:

• Single-family homes.
• Condos (must be in a VA-approved community).
• Multi-unit properties (up to four units, as long as you live in one of them).
• Manufactured homes (with land, and subject to lender approval).

The VA does not set a specific credit score requirement, but most lenders do. Typically, you’ll need a credit score of at least 580-620 to qualify. However, VA loans are more flexible with credit standards compared to conventional loans, making them accessible to borrowers with lower scores.

The VA provides financial counseling to borrowers who are struggling with payments. Additionally, because VA loans tend to have lower foreclosure rates, lenders may be more willing to work with you to find a solution, such as loan modification or repayment plans.

If you have full VA entitlement, there are no loan limits, meaning you can borrow as much as a lender approves without a down payment. However, lenders will still evaluate your income, credit, and debt-to-income ratio to determine how much they’re willing to lend.

Yes, VA loans allow sellers to contribute to the buyer’s closing costs, up to 4% of the loan amount. This can include paying off debt to help the buyer qualify or covering prepaid expenses like property taxes and homeowners insurance.

Yes, VA loans come with a built-in Escape Clause that protects buyers. If the home’s appraised value is lower than the purchase price, you can back out of the deal without losing your earnest money deposit.

Let’s say you earn $75,000 each year, which is $8,333 per month before taxes and deductions. By using the 28 percent rule, your full mortgage payments should add up to no more than 28 percent of $8,333, or $1,750 per month (including mortgage, insurance, and taxes). – This is assuming no other debts and doesn’t consider your other monthly obligations and budget.

Federal Housing Agency (FHA) mortgages are available to homebuyers with credit scores of 500 or more and can help you get into a home with less money down. If your credit score is below 580, you’ll need to put down 10 percent of the purchase price. If your score is 580 or higher, you could put down as little as 3.5 percent. There are limits on FHA loans, though. In most areas in 2024, an FHA loan cannot exceed $498,257  for a single-family home. In higher-priced areas, the number can go as high as $1,149,825. You’ll also need to factor in how mortgage insurance premiums (MIP) — required on all FHA loans — will impact your payments.

Eligible active duty or retired service members, or their spouses, might qualify for down payment–free mortgages from the U.S. Department of Veterans Affairs. These loans have competitive mortgage rates, and they don’t require PMI, even if you put less than 20 percent down. Plus, there is no limit on the amount you can borrow if you’re a first-time homebuyer with full entitlement. You’ll need to also consider how the VA funding fee will add to the cost of your loan.

Loans backed by the United States Department of Agriculture (USDA) require no down payment, and there is no limit on the purchase price. However, these loans are geared toward buyers who fit the low- or moderate-income classification, and the home you buy must be within a USDA-approved rural area.