2016 VA Loan Limits for Southern California

2016 VA Loan Limits for Southern California

orange county va loan limit 2016VA loan limits for 2016 in southern California were recently announced, and are mostly unchanged from the limits for 2015. The VA loan limit for Orange County in 2016 will be $625,500. Los Angeles will be the same. And while the $625,500 is great for most VA borrowers, it is important to know that it is possible to get a VA loan as high as $1,500,000, because $625,500 is the $o down payment 100% financing limit, not the total loan amount limit.

VA 100% Financing Loan Limit

When we say that the VA 100% financing loan limit for Orange County is $625,500, we mean that a California Veteran can purchase a home in Orange County for a price as high as $625,500 with No Down Payment. And in many cases the lender can even price the loan with a “lender credit” that will cover the closing costs so that the Veteran won’t funds to close. This works out to be an awesome loan program for those that are eligible.

What about the Jumbo VA Loan Program?

A Jumbo VA Loan occurs when a Veteran purchases a home for higher than the 100% financing limit (and wants to get the maximum loan amount possible. ) A small down payment is required equal to 25% of the difference between their “higher” purchase price and the 100% financing limit ($625,500 in Orange County). For example, if a Veteran purchases a home for $675,500, or an even $50,000 above the 100% financing limit, then they would need a down payment equal to $12,500. The resulting VA loan would be $663,000. The actual down payment percentage in this example is only 1.85%. So for only 1.85% down payment a Veteran was able to buy a home for $675,000. That is unbelievable, but true. Not only that but the VA program also has very aggressive 30 year fixed rate programs, flexibility with underwriting and credit, and no monthly mortgage insurance.

The VA program is available for eligible Veterans and can be used multiple times. It is even possible in some circumstances to have more than one VA loan outstanding at a time. And for those Veterans who have a prior foreclosure, short sale, or bankruptcy, you will be pleased to know that VA only requires a two year wait after one of these credit events. Most other types of loan programs require anywhere from 4 years to 7 years depending on the event.


Authored by Tim Storm, an Orange County VA Loan Officer specializing in VA Loans. MLO 223456. – Please contact my office at the Home Point Financial. My direct line is 949-640-3102. I will prepare custom VA loan scenarios which will be matched up to your financial goals, both long and short-term. I also prepare a Video Explanation of the your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.