Virginia Housing is accepting conventional loan applications at the new increased conforming loan limit of $548,250. Certain restrictions apply, see below.
Effective Date
This is effective in Mortgage Cadence with loan applications on or after January 1, 2021. If you have a loan in process with a loan amount above the previous conforming loan limit but does not exceed $548,250 with an application date prior to January 1, 2021 that has not been purchased yet by Virginia Housing, please contact Melissa Whitlow for assistance (Melissa.Whitlow@VirginiaHousing.com).
Important to remember!
The Virginia Housing Sales Price Limits have not changed. That means when a conventional loan has a Plus Second, DPA Grant, and/or MCC the sales price limits apply, which typically are more restrictive. It is only when a conventional loan is originated without a Virginia Housing Specialty Program that the sales price limits do not apply. Below are some examples.
Example 1
- Conventional with DPA Grant and MCC
- Sales Price $550,000
- Loan amount $533,500
- Prince William County (not targeted area)
Is this acceptable?
No, because the sales price is above the Washington-Arlington-Alexandria area limit of $525,000 that applies due to the Grant/MCC.
Example 2
- Conventional
- Sales Price $550,000
- Loan amount $533,500
- Newport News City (not targeted area)
Is this acceptable?
Yes, because the sales price limit of $390,000 does not apply when there is no specialty program and the loan amount is within the conforming limit.
Example 3
- Conventional with Plus Second Mortgage and MCC
- Sales Price $440,000
- Loan amount $426,800
- Chesterfield County (not targeted area)
Is this acceptable?
No, because the sales price limit is above the Richmond area limit of $425,000 that applies due to the Plus Second Mortgage and MCC.