VA Home Loan Limits and Qualifying
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
Why do the VA and my lender have different guidelines for VA loans?
It can be very confusing to borrowers when they discover that their lender's qualifying guidelines are different from the official VA home loan program guidelines published by the VA. Let's discuss why this can happen.
The Veteran's Benefits Administration under the U.S. Department of Veterans Affairs establishes guidelines for the VA Loan Guaranty Program, but they don't make the actual loans. Lenders such as banks, savings and loans, and mortgage companies put up the money for the loans. Many of these lenders have private investors who also set lending guidelines that may differ from those of the VA. So many lenders must follow both sets of guidelines to determine the terms of each loan. This is why you may, in some cases, find a lender's criteria to be more strict than what's outlined by the VA.
Speaking with a VA lender is the best way to find out if, and for how much, you can qualify.
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