What are the VA loan limits? – Forbes Advisor

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Veterans Affairs (VA) Home Loans offer service members, veterans and their spouses an easy way to buy a home without saving for a down payment or paying for private mortgage insurance (PMI).

The maximum VA loan limits you can qualify for are based on law, lender, credit, and the county in which you are buying your home. Here’s what you need to know about VA loan limits for 2022.

VA Loan Limits for 2022

As of January 1, 2020, there is no loan limit for VA loans over 144,000 if you are fully eligible. The Blue Water Navy Vietnam Veterans Act of 2019 removed VA loan limits for all veterans and military members. This is the legislation that eliminated VA limits beyond the compliant loan limits set by the Federal Housing Finance Agency (FHFA).

Even though these loans no longer have specific PV limits, the FHFA still sets the maximum borrowing amount. However, this limit can be spread across multiple homes, so you may not qualify if you had a previous VA loan that you didn’t repay on a home that you no longer have.

The limit does not limit the overall amount you can borrow, only what you can borrow for a mortgage with no down payment.

2022 VA County Loan Limits

Although the VA itself no longer governs loan limits, there are VA County absolute maximum loan limits that are based on FHFA numbers.

Most of the country has a maximum limit of $647,200. However, some counties have higher boundaries, and they are not necessarily located where you think they would be. For example, Tennessee has a few counties with limits up to $694,600.

New York, California, Alaska, Utah, Wyoming, Virginia, and Hawaii have counties with a limit of $970,800, for example. Washington State has counties with limits close to $900,000. Colorado, Idaho, Massachusetts, New Hampshire, and Maryland are other states with high county loan limits.

You can consult the FHFA compliant loan limit map to find the limit in your area.

VA loan limits set by lenders

Even though you are fully eligible, lenders may have their own loan limits based on your income, debt-to-income ratio (DTI), or credit score. So each lender’s VA loan requirements may be different.

If a lender doesn’t offer you the amount you need, compare the offer with other lenders. This is always a good idea so that you can find the loan that best suits your needs.

What is VA Law?

The VA entitlement is the amount the VA is willing to pay your lender if you cannot pay your mortgage.

If you are considering a VA loan and qualify for a loan, the first step is to obtain your certificate of entitlement to present to lenders. But there are different types of fees that can affect your loan limits.

Full straight VA

Because getting a VA loan is considered a VA benefit, a fully eligible person must fall into at least one of these three categories:

  1. You are using your home loan advantage for the first time.
  2. You paid off a VA loan in full when you sold your home.
  3. You sold your home short, but still paid off the VA for the full amount of your loan.

Here is what the VA guarantees with full rights:

  • For any loan up to $144,000: VA pays up to $36,000
  • For any loan over $144,000: The VA reimburses up to 25% of the loan amount

Tip: Don’t worry about additional terms such as full entitlement or bonus entitlement. This is largely technical language used by the AV when working out details with lenders. But always check with your lender to make sure you understand all the details before taking out a loan.

VA partial right

If you own a home, you may have partial eligibility up to the remaining amount of your total VA home loan eligibility limit.

Let’s say you want to buy a house valued at $400,000 and you have a $200,000 house. You have enough remaining eligibility based on the lowest county lines in the country to own both properties.

keep in mind: Each lender has different requirements to qualify. So be sure to review the details to make sure you qualify for the loan you want.

How to Get a VA Law Certificate

If you are considering a VA loan, the first step is to obtain your Certificate of VA Home Loan Eligibility (COE). To get your COE, you will need military documents to apply.

  • Veterans: need their discharge and separation papers (DD214)
  • Active duty members: Need a statement of service signed by their Commanding Officer, Warrant Officer or Staff Officer with the information requested by the VA

You can find a full list of requirements based on your service at WE. Department of Veterans Affairs site.

Eligibility for a VA home loan

VA home loans offer military service members and veterans the opportunity to purchase a home with a lower credit score and sometimes even a better rate, while avoiding the upfront costs of down payments and private mortgage insurance.

Applying for a VA loan is different from applying for a regular mortgage. But once you’ve secured your COE and compared the best VA lenders, you’ll have a better idea of ​​what you can afford and which loan is best for you.

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