The Veterans Administration announced that the zero-down loan limits, for VA-guaranteed mortgages, will be reduced to $437,500, in San Diego County. The high-balance, VA jumbo mortgage program started in 2008 and allowed for zero down loans up to $697,000. As priced declined, that number was reduced to $593,750 for 2009.
Median prices across Southern California stabilized in 2009 in response to the high balance loan program, foreclosure stays, and home buyer tax credits. San Diego County's median price rose from $323,000, in October, 2008 to $325,000, in October, 2009. It is anticipated that the 2010 VA loan limit should facilitate approximately 75% of the sales prices for 2010.
2010 VA loan limits in Southern California:
San Diego $437,500
Los Angeles $593,750
San Bernardino $417,000