| VAÂ Loan Limit Bumped
$333,700 limit for 2004 mirrors conforming limit boost January 2, 2004 By MortgageDaily.com staff |
| Ginnie Mae now pools higher-limit home loans guaranteed by the Department of Veterans Affairs (VA).
Ginnie announced that effective Jan. 1, VA-insured home loans of up to $333,700 are eligible to be placed in its mortgage-backed securities pools. The new maximum amount increased 3.4% from the previous limit of $322,700 and mirrors Freddie Mac’s and Fannie Mae’s 2004 single-family conforming loan limit increase. Both the VA Funding Fee and the VA loan amount must fit under the limit, which will change accordingly to conforming loan limits. The cash down payment and or equity, plus the available VA guaranty, is still required to equal at least 25% of the lesser purchase price or the Certificate of Reasonable Value, said Ginnie. This means that a VA-guaranteed loan of $333,700 can be pooled only if the VA guaranty amount and the cash and or equity downpayment equal no less than $83,425. VA loan issuers are required to install the updated GinnieNET, Version 5.9, in order for Ginnie to pool the loans, according to the government owned corporation’s announcement. |
