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Conventional Loan Limit Increase

VHDA is accepting conventional loan applications at the new increased conforming loan limit of $510,400.

Mortgage Cadence will not be updated with the higher loan limit until sometime later in the year.

Until these changes are made, here are the procedures to follow:

  • Lenders may proceed with registering loans in Mortgage Cadence but it must be at the prior lower conventional loan limit ($484,350).
  • After the loan has been registered and locked in Mortgage Cadence, the lender may increase the loan amount and click SAVE.
  • Upon saving, a product validation error message will appear indicating the loan amount is too high.
  • Do not contact the Lock Desk at this time. Please contact Melissa Whitlow (melissa.whitlow@vhda.com) to successfully override the system and allow the new higher
  • conforming loan amount.

Important to note: The VHDA 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 VHDA Specialty Program that the sales price limits do not apply. Below are some examples.


Example 1

  • Fannie Mae Reduced MI with DPA Grant and MCC
  • Sales Price $538,000
  • Loan amount $510,400

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.

Note: If the sales price was less at $525,000 it would be within VHDA’s limits, however the max loan amount is $509,250 at 97% LTV ($510,400 would be excessive in this case).


Example 2

  • Fannie Mae Reduced MI
  • Sales Price $600,000
  • Loan amount $510,400
  • Virginia Beach (not targeted)

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

  • Fannie Mae No MI with MCC
  • Sales Price $550,000
  • Loan amount $510,400
  • Richmond City (not targeted)

Is this acceptable?

No, because the sales price is above the Richmond area limit of $425,000 that applies due to the MCC.

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