VA Loan Limits And Mortgage Guidelines On VA Home Loans

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VA Loan Limits And Mortgage Guidelines On VA Home Loans

This BLOG On VA Loan Limits And Mortgage Guidelines On VA Home Loans Was UPDATED On November 5th, 2018

VA Loan Limits depends on where the property is located and the type of property the borrower is financing.

VA Loan limits will depend on two factors:

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

About VA Mortgages

VA Loans are probably the best mortgage loans any borrower can get:

  • This is 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 there is no money out of pocket on a home purchase
  • 4% sellers concessions is the most VA will allow from a sellers to offer a home buyer sellers concessions
  • This is so buyers 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
  • It is up to the lender to set credit score requirements
  • Gustan Cho Associates at Loan Cabin has no overlays on VA Loans
  • VA does no have a maximum debt to income ratio requirements
  • However, most lenders want debt to income ratios below 55% DTI
  • I just go off an approve/eligible per Automated Underwriting System
  • The only requirement we require on VA Loans is an AUS Approval
  • $0 Money Down
  • 100 Financing for VA Loans
  • 4% Sellers Concessions allowed on VA Loans

How Are VA Loan Limits Work

The way VA Loan Limits Work are as follows:

  • The United States Department of Veterans Affairs sets 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
  • It is like a form of mortgage insurance
  • This in turn affects the amount of money lenders are willing to fund on VA Loans
  • Lenders stick and adhere to the VA Guidelines
  • 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 lender and does
  • VA does not originate, fund, nor service VA Loans
  • VA Loans are originated, funded, and serviced by lenders who are VA approved
  • VA guarantees Loans that have been originated and funded by lenders in the event borrowers defaults on their VA Loans and that loan goes against foreclosure

Updated 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 VA Loan Limits:

  • In most areas of the country, the maximum VA Loan Limits is capped at $453,100 with zero money down and 100% financing
  • There are 235 high cost counties in the United States that have caps of up to $679,500 on VA Loan Limits
  • Can go above the VA Loan Limits on areas if borrowers put 25% down payment above the extra VA Loan Limit
  • For example, if purchasing a home for $553,100 in an area where the VA Loan Limits are capped at $453,100 that is $100,000 above and beyond the $453,100 VA Loan Limit
  • So if buyer can put down 25% of the $100,000 or $25,000 on a $553,100 home purchase, borrower will be eligible for $553,100 purchase

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 Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We just go off Automated Underwriting System findings and have no lender overlays on VA Loans.

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