Maximum VA loan county limits for 2011 released

The Department of Veterans Affairs Loan Guaranty Program recently published county “limits” to be used for VA Loans closing between January 1, 2011 through September 30, 2011. The limits for Fiscal Year 2012 have not yet been released.

Please note, these limits do not reflect a maximum amount that an eligible veteran is permitted to borrow, but rather, reflects the VA’s maximum guaranty amount for a particular county. The maximum VA guaranty amount for loans over $144,000 is 25% of the 2011 VA limit. For example, an eligible veteran may borrow up to $818,750 to purchase a property in Washington, DC (2011 VA limit), with the VA guaranteeing 25% of the loan amount, or approximately $204,687.50.

The limits listed below are for some counties in Maryland and Virginia, as well as for the District of Columbia. View a complete list of the county limits for 2011. [Please note, if your county is not listed on the county limits chart on the VA website, the 2011 limit is $417,000.]

STATE	COUNTY	2011 VA LIMIT
DC	District of Columbia	$818,750
MD	Anne Arundel	$500,000
MD	Frederick	$818,750
MD	Howard	$500,000
MD	Montgomery	$818,750
MD	Prince George's	$818,750
VA	Alexandria	$818,750
VA	Arlington	$818,750
VA	Fairfax	$818,750
VA	Falls Church	$818,750
VA	Fauquier	$818,750
VA	Loudon	$818,750
VA	Manassas	$818,750
VA	Prince William	$818,750

Title company fees matter

Most reputable title companies now maintain robust websites with a disclosure of their title charges/fees, making it simple for prospective homebuyers to compare title company fees and select their title company.  

According to a recent analysis, less than 10 percent of homebuyers and refinancing homeowners chose to select their own title company – despite the fact that it was their legal right to choose a title company.  Instead, the overwhelming majority of those homebuyers and refinancing homeowners deferred to their real estate agent or mortgage lender to choose the title company on their behalf.

Why?

Because most homebuyers do not realize the potential cost-savings associated with selecting their own title company.  They do not realize that a simple online search for comparing costs among local title companies could save a thousand dollars or more.  

In fact, many real estate agents and mortgage lenders are not aware of this simple fact.  It is incorrectly assumed that all title company charges are equal.  

My “Best Friends” advice is as follows:

• Choose a title company yourself – don’t leave the task to others.

• Choose a title company that clearly discloses their title fees and title insurance rates on their website.

• Choose a title company that is independent – not a title company affiliated and sharing profits with your real estate agent’s brokerage or your mortgage lender’s company.

• Choose a title company that has been in business for at least 10 years.

• Choose a title company that conducts closings by licensed real estate attorneys – not notaries or settlement agents.

• Choose a title company with positive user reviews. Check out Yelp, ActiveRain.com or Google for starters.

Follow my “Best Friends” and you will end up at the closing table of a reputable title company AND pay less.