In December 2014, loan limits for Orange County were announced and these changes in the loan limits for VA loans as well as FHA and conforming loans. The changes were for all counties, including Orange County. When it comes to Orange County VA home loans, it is easier to keep track of the limits, as the number is the same across all loan programs in the county.
For a single family home, the maximum limit in Orange County is $625,500. This limit is applicable for VA loans, conforming loans, and also FHA loans.
Limits for Orange County VA Home Loans for 2015
In the last one year, house prices have seen a significant rise. As a result, it had become difficult for serving military personnel and veterans to buy a home. This prompted the Department of Veterans Affairs to change the VA loan limits, so that they fall in sync with the conforming limits set by the Federal Housing Finance Agency.
This is a change compared to the last few years when VA home limits were higher than the conforming limits. However, with both limits now aligned, in 2015, the maximum lending amount for Orange County VA home loans will be the same as conforming loans and FHA loans.
How Does This Affect the Veterans?
As the maximum limit for VA loans in Orange County will be $625,500 for single family homes, that is the amount veterans can apply. However, if they want an amount higher than this limit, their home loan will turn into a jumbo mortgage. This said, there are limits set for other types of homes, such as two-family, three-family and four-family homes.
If borrow more than the prescribed limit, it turns into a jumbo loan and this type of loan is put through rigorous scrutiny. Basically, veterans should have a high credit score and reduced debt ratio. They also should have the ability to make higher monthly payments.
Trends in Housing in Orange County
It has been observed from the available real estate data, home prices are rising across Orange County. In November 2014, the median sale price for homes in the County was $585,000. In other words, more than half the homes sold during that time were priced higher than $585,000, while the other half were sold less than that amount. Compared to the home sale price in November 2013, this is about a 4.5 percent increase in the median sale price of homes.
Real estate experts reckon in 2015 Orange County will see a modest increase in home sale price. Hence, it makes complete sense to ensure the limits for Orange County VA home loans stay above the median home price. This will give impetus to the real estate market and also allow veterans to make a purchase without worrying about not being able to afford their own homes.
If you are a veteran, it is prudent to find a reputable and reliable full service real estate company that can help you find the perfect home and also facilitate fast dispersal of your Orange County VA home loan.