BLOG UPDATE: New Construction In San Diego

VA Loan Limits Reduced in San Diego County...Again

The department of Veteran Affairs has lowered its lending limits again for 2012 for VA purchases in San Diego County.  In 2011 the maximum loan amount for San Diego County was $537,500, which was down from $593,750 in 2010.  The 2012 maximum loan amount for a home purchase in San Diego is down to $477,000.  This is a decrease on average of 10% in the past 3 years, and the median sales price for a single family homes county wide has declined 5% from 2010 to 2011.  

So what does this mean for prospective home buyers who are planning on using their VA eligibility to purchase a home and use a mortgage?  Their buying power has been diminished by over $100,000 dollars in the past 2 years in San Diego, with the average single family home price around $350,000 County wide.  Even though the VA loan limit is still well above the counties average home price it seems that banks are afraid to lend money for mortgages and are cutting back everywhere possible.

Hopefully this trend will not continue in 2013, if history continues to repeat itself we are on pace to lose another $50,000 and would bring the VA limits down to $420,000 range.  Interest rates continues to stay low 4% range which is good, and if you have VA eligibility and considering purchasing you may want to start looking sooner rather than later. 


Posted on: Thursday the 16th of February 2012.
Total views: 460
Written by: Ernesto Rivera

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