VA Home Loan Price Limits
If you are a veteran who is interested in taking advantage of the befits the VA offers in the VA Home Loan Guarantee Program there are some important facts you should know about limits on the amounts of a loan that the VA will guarantee.
Over the years the VA has increased their loan limitation amounts when inflation and cost of living rises. There are different stipulations to the loan limits and special loan limits for direct loans to Native Americans. The current VA Home Loan Guarantee limits are as follows:
- The VA guarantees up to $36,000 on loans for homes over $144,000.
- If the home is between $45,000 and $144,000 then the VA guarantees a minimum of $22,500. The actual amount is determined depending on the actual loan amount that is borrowed.
- If the loan is under $45,000 then the VA guarantees up to 50% of the loan value.
- There is no maximum amount that you can borrow to purchase a home through the VA Home Loan Guarantee Program. However, the VA will only guarantee up to $36,000 of the loan amount, and in order to take advantage of the no down payment option most VA approved lenders will not let you take a loan larger than $359,650. This is because the lender likes to see at least 10% equity left in the home when financing a loan. However, if you plan to put a down payment on the home you can borrow as much as you reasonably qualify for.
- For Native American Direct Loans from the VA the limit is $417,000 for all areas except for Guam, Hawaii, Alaska, and the U.S. Virgin Islands where the loan limit is $625,500.
Remember that just because the VA allows you to take loans up to these amounts does not mean that you will qualify for this loan amount. Loans are based on your financial information and the amount you qualify for. For more information on the VA Home Loan Guarantee loan limits you can visit My Loan Station