What is the limit on these loans anyway?
An easy guide to know how much you can get a loan for.
The maximum guaranteed on a VA loan is 240,000 and while this might buy a fairly large sized house in most areas of the country, high priced markets such as San Francisco or New York you may want to try a different form of financing your loan. For the most part first time buyers will be guaranteed up to the VA’s Maximum of $240,000 dollars says Keith Pedigo, the director of loan guaranty services at the VA. But more than likely the actual mortage rate is based on assets, income, credit history and debts, just like any other regular loan provided in America.
A positive spin to this story is that a seller is allowed with permission by the VA to let the buyer assume their loan, making resales much more attractive then they previously were. The only downside is the veteran is shackled to that home until paid off before he or she can use that loan to buy another home. A veteran is only allowed to borrow the difference between the outstanding loan and the maximum allowed by the certificate of eligibility, says Pedigo.
A cautionary piece of advice that most veterans already know is save your paper work if you paid off your loan so if you ever apply for another VA loan you can ask for the maximum amount you’re allowed.
A VA loan is still tough to be approved for.
“Because we’re a no-down-payment program, that’s a benefit to vets,” he says. “We do try to be as flexible as we can. But that doesn’t mean we approve an application with a serious lack of credit or insufficient income.”
But the major distinction for a VA loan is that a buyer can get into a home without investing a down payment, says Pedigo, “which is a huge advantage.”
And a huge advantage is saying the least in these days of economic shortcomings. As Hunter Thompson once said, “The bastards now have a formidable opponent”.
Well, till next time lads and like always if you’d like to find out if you qualify for a VA home loan click here.