Do VA loans have set loan limits like FHA?
Today we will go into detail about this portion of the VA qualifying process and how to help both Veterans and Realtors maximize the benefits of the VA loan program.
VA Loan Limit Guidelines
Per VA.gov website: “VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money a lender will finance.”
“The loan limits for a VA loan are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment.”
While there is no maximum VA loan amount, lenders usually will not exceed $417,000 which is the current conforming loan limit unless the property is located in what would be considered a high-cost county.
For details on high-cost county loan limits, please click here for the complete breakdown.
While it can be complicated, here are some helpful reminders:
- For all counties not specifically named on the loan limit list, the maximum loan amount will be $417,000 which is what the VA Guaranty will cover when there is NO Down payment from the Veteran and assuming there is full entitlement.
- The loan amount cannot exceed the lesser of the appraised value or purchase price, plus the VA funding fee.
- Loan amounts can exceed the above mentioned limits, but will require additional out of pocket down payment from the Veteran.
Please note that Veterans who had a prior VA loan may still have “remaining entitlement” to use for another VA loan. Most lenders require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less.