Veterans Administration (VA) and home loans

[HIJACKER]

Is anyone here an expert on the VA?

Here's my question:

The VA Loan limit for my county in 2011 was $818,750. In 2012, this was reduced to $625,500. However, a recent bill was passed making the NEW effective loan limit rate as $838,750.

Here is the link:
http://search.yahoo.com/r/_ylt=A0oG...ov/homeloans/docs/loan_limits_august_2012.pdf

The purpose of the loan limits is that the VA will provide a 100% loan up to the loan limit amount specified. Anything over these amounts, the veteran must pay 25% of the difference.

My question is, if someone decides to purchase a new home and have it built, they would be going under contract for the build with the assumption of the new rate at $838,750. If the construction isn't planned to be completed until FEB 2013 and the rate goes down, would I be on the hook for the 25% difference between the lowered limit and the purchase price on the home or is there a way to somehow lock in that loan limit rate while it's still at $838,750 to avoid this scenario, or is there a special exception for new construction that I'm missing?

I'm getting different answers all over the place on this, even different answers if I call the VA. So, I wanted to ask Prime for help.

 

[HIJACKER]

I hear crickets. I'm guessing no one here is well-rounded in Home Mortgage? If you have a REALLY GOOD contact who is, can you PM me?

 

[blue_myriddn]

I have a friend who works at a credit union in the area and I believe she does work with VA loans. I am going to be seeing her at a wedding this weekend and I printed out your post; will hit her up with your questions and see if she can provide you with some info.

 

[pvmike]

You'd be on the hook for the difference should the law change prior to closing your purchase. There is no exception for incomplete new construction.

 

[HIJACKER]

You'd be on the hook for the difference should the law change prior to closing your purchase. There is no exception for incomplete new construction.

Source?

What about doing a construction loan at the beginning?

 

[HIJACKER]

Update:

I spoke to the Veteran's Affairs Regional Office for Home Loan Processing this morning. If the rates were to decrease on Jan 1, 2013, borrower's have the ability to apply for an exception at that time. Assuming the rates DROP in Jan 2013, the mortgage company/loan officer would send over the sale contract, loan application, and any other documentation for the VA to review to confirm that everything was completed and dated in between the 08/06/12 – 12/13/12 $838,750 range. Once reviewed, the VA would make an exception to the case file and grant the $838,750 limit to to the borrower/veteran even if closed in early 2013.