Questions & Answers About VA Home Loans
This is an archive of common and uncommon questions addressed by our department.
You can Ask a VA Loan Question, or you can call 1-800-211-9024.
Browse the topics below to view answers to questions that have been submitted by borrowers and prospective borrowers.
How much can I borrow on a VA Home Loan?
Neils Jorgensen
Department Representative
The maximum loan amount for a VA Home Loan is now $417,000.00. The purchase amount may be higher. On a VA Home Loan purchase, in most cases, the Veteran can borrow 100% of the purchase price as long as the amount of the purchase price plus VA Funding Fee is not higher than the $417,000 maximum allowed.
Otherwise, and in the case of a refinance of a VA Loan, the rule for the maximum loan amount based on each individual situation, and comes down to what the appraised value is. The amount that is allowed on a VA loan is based on two rules related to the Loan-To-Value. A VA Refinance Home Loan will allow 90% of the appraised value OR 75% of the appraised value plus $36,000, whichever is less. So, for example, let's say the appraised value is $200,000. VA would allow 90% of that, which is $180,000, or 75% of that, which is 150,000 plus $36,000, which equals $186,000. So in this case, the maximum loan amount is $180,000.00 because $180,000 is the lesser of the two values derived from the formulas.
Does a VA Home Loan have mortgage insurance?
Neils Jorgensen
Department Representative
No, a VA Home Loan does not have mortgage insurance (also referred to as "M.I."). VA Loans are actually guaranteed by the VA, not insured. This means that you have neither up front nor monthly mortgage insurance premiums.
