VA Home Loan Limits and Qualifying
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
What's the most I can borrow with a VA mortgage?
VA Mortgage amounts differ depending on a veteran's entitlement and ability to pay.
Let's talk about entitlement first. Entitlement is the amount the VA will guarantee, and is usually 25% of the loan. Each veteran has basic entitlement of $36,000. This is for a loan of up to $144,000. Nowadays, many home values exceed that amount and the VA is sensitive to the current cost of living. This is where bonus entitlement comes in to play. Bonus entitlement is $68,250. When added to basic entitlement, each eligible veteran has $104,250 worth of entitlement for loans over $144,000 and up to $417,000 -- even more in some U.S. counties where the cost of living is higher.
Ability to pay determines how much entitlement can be used. In order for a mortgage lender to determine how much to lend, it's necessary to first figure out what a borrower can afford to pay according to standards. Lenders will do a complete analysis of a borrower's debt-to-income ratio, residual income, and credit to determine ability to pay.
If you are looking to find out how much you could qualify for, you can get a quote directly from a VA loan professional.
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