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Veterans Benefits Administraation circular 26-08-16
- Friday, September 05, 2008
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Veterans Benefits Administration Circular 26-08-16
Department of Veterans Affairs Sept 5, 2008
Washington, D.C. 20420
MAXIMUN GUARANTY AMOUNTS FOR LOANS
ORIGIATED AFTER JANUARY 1, 2009
1. PURPOSE: On July 30, 2008, the President signed Public Law 110-289, the Housing and Economic Recovery ct of 2008. Section 2201 of the Act provides a temporary increase in VA’s maximum guaranty amount through December 31, 2008. This temporary increase was detailed in VA Circular 26-08-11. Effective January 1, 2009, VA’s maximum guaranty amount will change as described below.
2. GUARANTY AMOUNTS: For loans where the original principal loan amount is $417,000 or less, the VA’s maximum guaranty amount remains unchanged. For loans over $417,000, originated on or after January 1 2009, VA’s maximum guaranty amount over 25 percent of the Freddie Mac conforming loan limit for a single-family home in the county in which the property securing the loan is located. The Freddie Mac conforming limits for each county are the same as the Federal Housing Administration mortgage limits. Please note that, if a veteran has previously used entitlement that has not been restored, the guaranty amount for that veteran must be reduced accordingly.
3. ANNUAL UPDATES: On January 1, 2010 and each January 1 thereafter, the Freddie Mac conforming loan limit will be updated by the Federal Housing Finance Agency to reflect changes in the national housing price index as well as changes in area median prices. This will result in changes to guaranty amounts discussed in paragraph 2 of this circular.
4. Rescission: This circular is automatically rescinded January 1, 2010.
By Direction of the Under Secretary for Benefits
Judith A. Caden, Director
Loan Guaranty Service
Distribution: CO: RPC 2021
SS(26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2021)
(LOCAL REPRODUCTION AUTHORIZED)
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