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King County VA Loan Limits a Thing of the Past

Sammamish Mortgage
August 3, 2016
Last updated:
June 21, 2021
In This Article

VA loan limits are usually increased every year in response to an increase in home prices. But according to a new law, VA loan limits are a thing of the past going forward.

VA home loans are great mortgage programs for those who have served the country, as well as their families. They make homeownership more affordable and accessible, mainly because of their zero down payment options. But now, the program is going to allow veterans to have even more flexibility.

As of January 1, 2020, VA loan limits no longer apply. The size of a loan that a veteran can take out without a down payment no longer matters, with certain exceptions. This will allow veterans to purchase more expensive homes, which is very convenient for those who are looking to buy in higher-priced areas.

Home prices in King County, Washington saw double-digit gains over the past few years, prompting federal officials to increase loan limits. That said, home prices are not having as much of an effect on VA loan limits because these limits are eliminated0.

Thanks to the passing of the Blue Water Navy Vietnam Veterans Act of 2019, which was passed in June 2019, veterans are not required to keep their loan amounts under a certain limit in order to take out a VA loan with no down payment. This means borrowers who want to use this program to buy a house in King County should have some options available, without venturing into “jumbo” mortgage territory.

Of course, individual lenders can still deny mortgages to certain borrowers to their discretion based on the borrower’s creditworthiness and income.

Today’s Seattle Mortgage Jul, 27, Tue, 2021

No More VA Loan Limits for King County

The U.S. Department of Veterans Affairs, which manages the VA home loan program, traditionally limits the portion of the mortgage loan they are willing to guarantee. This can affect the amount you are able to borrow when using this program. But such is not the case going forward.

Please note: It is important to understand that loan limits will still apply on VA loans to veterans who have more than one active VA mortgage or who have defaulted on a previous VA loan.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Median Home Price in Spring 2021: $723,063

According to the real estate data website Zillow, the median home price for King County, Washington rose to $723,063 in March 2021. That was a 10.6% increase over the previous year, by their analysis.

Home prices in King County are some of the highest in the state of Washington. And experts agree that activity in King County will continue to remain busy over the next year or so. 

The Department of Veterans Affairs would base its loan limits on the “conforming” caps established by the Federal Housing Finance Agency, and those limits were based on median home prices in each county. In short, the VA loan limits were designed to enable borrowers to purchase a moderately priced home.

If veterans needed to go above the VA loan limit to buy a home, they could. But a down payment of some kind would be required. VA borrowers who stay within the loan limits, on the other hand, typically qualified for 100% financing for no down payment.

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Interested in a Home Loan in King County?

Sammamish Mortgage has been working with borrowers in Washington, Oregon, Colorado, and Idaho since 1992, helping them get the mortgage they need to buy a home. We offer different mortgage programs to borrowers all across the Pacific Northwest region. Contact us today if you have questions about applying for a mortgage.

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