As a veteran of our armed forces you will have access to the many benefits associated with a VA loan. However, these funds are not endless and there are some limits that could influence your final decision and have an impact on which homes you can afford.
The loan limit for most of the country is $417,000, but there are some specific areas that may allow a larger loan amount. This can change on occasion, though, so you may want to double check the most recent limits or contact us to learn more about the situation.
Right now, the maximum amount that the VA will guarantee – on loans over $144,000 – is 25%. This means that a veteran who has full entitlement available can borrow up to the current year’s limit and the government will guarantee a quarter of it. This is what makes it easier for many veterans to receive a home loan. The banks are more willing to relax their standards when they know they will receive a large portion of it no matter what else happens.
If the veteran has already used entitlement that has not been restored yet, your maximum guaranteed amount may have to be reduced accordingly. If you are ready to start the home buying process, contact us today to find out if these loan limits apply to your situation and how we can help you find the best home loans.