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WBK Industry News - Federal Regulatory Developments

VA Announces 2020 Loan Limits

The VA has issued Circular Letter 26-19-33, announcing new effective loan limits for calculating entitlement for VA loans that close on or after January 1, 2020.  VA’s effective loan limits for 2020 are the same as FHFA’s 2020 limits for single-family homes.

For counties where the 2020 effective loan limit is lower than the 2019 effective loan limit, the higher 2019 loan limit applies even to loans that close on or after January 1, as long as all parties signed the loan applications prior to that date.

VA will continue to guarantee 25% of the loan amount on an Interest Rate Reduction Refinancing Loan (IRRRL) regardless of the Veteran’s entitlement. 

The effective loan limits have been posted here