2017 VA Loan Limits

This BLOG On 2017 VA Loan Limits Was Written By Gustan Cho

2017 VA Loan Limits depends on where the property is located and the type of property the borrower is financing. 2017 VA Loan limits will depend on two factors:

  • 2017 VA Loan Limits will depend on the location of the property: 2017 VA Loan Limits will depend on the county where the subject property is or the city where the subject property is located
  • 2017 VA Loan Limits will also depend on the type of property that is being financed. You can finance a one to four unit property with a VA Loan. 2017 VA Loan Limits are higher for a four unit property than it will be for a three unit, and higher for a three unit than it would be a two unit, and the 2017 VA Loan Limits is higher for a two unit than a one unit.

VA Loans are probably the best mortgage loans any borrower can get due to the no money down feature on a home purchase. With the combination of 100% financing and if the buyer gets up to a 4% down payment in sellers concessions, 4% sellers concessions is the most VA will allow from a seller to offer a home buyer sellers concessions so the buyer can use it towards their closing costs, the home buyer will have to come up with zero money to close on their home and get the keys. Here are the three best features of VA Loans:

  • No money down. 100% financing
  • 4% sellers concessions allow
  • Upfront VA Funding Fee can be rolled into the VA Loan or paid with sellers concessions
  • No monthly mortgage insurance premium
  • VA Loans have one of the lowest mortgage rates out of all loan programs

Qualification Requirements For VA Loans

To qualify for a VA Loan, the borrower needs the following:

Served in the United States Military

  • Have an honorable discharge
  • Have a valid Certificate of Eligibility or CEO from the Department of Veteran Affairs
  • VA does not have a minimum credit score requirement and it is up to the lender to set credit score requirements. Our requirement with my sponsoring lender is 580 FICO credit score
  • VA does no have a maximum debt to income ratio requirements. However, most mortgage lenders want debt to income ratios below 55% DTI. I just go off an approve/eligible per Automated Underwriting System and the only requirement we require on VA Loans is a 580 FICO Credit Score
  • $0 Money Down. 100 Financing for VA Loans
  • 4% Sellers Concessions allowed on VA Loans

How Are 2017 VA Loan Limits Work

The way 2017 VA Loan Limits Work are as follows:

  • The United States Department of Veterans Affairs or VA is not the government agency that caps the 2017 VA Loan Limits
  • VA Loans are capped by the VA Loan Guarantee up to 25% of the total VA Loan Amount
  • VA will limit or cap their VA Loan Guarantee which is like a form of mortgage insurance and this in turn affects the amount of money private VA approved mortgage lenders are willing to fund on a VA Loan
  • Private VA mortgage lenders stick and adhere to the VA Guidelines and then originate and fund VA Loans to borrowers who qualify for VA Loans
  • The United States Department of Veteran Affairs or VA is not a mortgage lender and does not originate, fund, nor service VA Loans. VA Loans are originated, funded, and serviced by private mortgage lenders who are VA approved. VA guarantees VA Loans that have been originated and funded by VA approved private lenders in the event if a VA borrower defaults on his or her VA Loan and that loan goes against foreclosure

Updated 2017 VA Loan Limits

VA Loans are the best mortgage loan programs but VA Loans are not for everyone. VA Loans are limited for Veterans of the United States Armed Services with an honorable discharge and a valid Certificate of Eligibility or COE. Veterans with a COE are eligible to purchase a condominium, town home, single family home, or a one to four unit owner occupant residential home with no money down with a VA Loan.  Here are the updated 2017 VA Loan Limits:

  • In most areas of the country, the maximum 2017 VA Loan Limits is capped at $417,000 with zero money down and 100% financing with a VA Loan
  • There are 235 high cost counties in the United States that have caps of up to $625,000 on VA Loan Limits
  • You can go above the VA Loan Limits on areas if you put 25% down payment above the extra VA Loan Limit. For example, if you are purchasing a home for $517,000 in an area where the VA Loan Limits are capped at $417,000, that is $100,000 above and beyond the $417,000 VA Loan Limit. So if you can put down 25% of the $100,000 or $25,000 on a $517,000 home purchase, you will be eligible for a $517,000 VA Loan.

VA Lender With No Lender Overlays

If you are looking for a VA mortgage lender who will just go off an approve/eligible and non lender overlays, contact The Gustan Cho Team at 262-716-8151 or email us at gcho@gustancho.com. We just go off Automated Underwriting System findings and have no lender overlays on VA Loans.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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