VA Home Loan Limits: How Much Can You Actually Borrow?

VA Home Loan Limits: How Much Can You Actually Borrow?

VA home loans allow Veterans, military members and military spouses to buy their first home without putting in a significant amount of downpayment. In addition to this, VA home loans come with other significant benefits like a no PMI requirement, the lowest interest rates and easy eligibility criteria.

Moreover, when it comes to buying a home using your VA loan benefit, there’s a lot to consider. However, the most common question Veterans have is how much they can actually borrow?

Sounds familiar? If you are looking for the same, here’s an insight on VA loan limits and how much you can borrow.

2022 VA Home Loan Limits

According to an amendment made by the VA back in 2020, there are no loan limits for Veterans or other qualifying applicants with full entitlement. In short, if an applicant has full entitlement, they can borrow as much amount they qualify for.

And, if an applicant has no or partial entitlement, they will be subjected to Va loan limits. These limits differ depending on case to case and your geographical location.

A Veteran or an active military member will have full entitlement if they have not used their VA home loan benefits before.

2022 VA Home Loan County Limits

On average, the maximum VA mortgage limit for borrowing a loan in most counties is $647,200. This means that applicants with partial or no entitlement can borrow a VA home loan worth $647,200 without making a downpayment.

If someone, however, wishes to borrow more than that, they must make up the difference by paying the extra amount as a downpayment.

Moving forth, some counties like California, New York, Utah, Alaska and Hawaii have a higher VA loan limit worth $970,800. You can determine the loan limit in your area by checking out the FHFA’s conforming loan limits map.

VA Home Loan Limits By Lenders

In addition to the VA mortgage limits set by the FHFA, your private lender might also set a specific limit on you, regardless of whether you have entitlement or not. These limits could depend upon your credit score, credit situation and monthly income.

If the lender is not willing to offer you the amount you need, you can talk to other lenders to compare the quotes or choose a house that fits your budget.

What Is VA Entitlement?

Usually, VA loans come with a government guarantee. To be precise, the VA backs a part of the loan private lenders offer the applicants. This part that the VA backs is called VA loan entitlement.

The entitlement is 25% of the loan amount or $36,000.

An applicant has a full entitlement if any one of the following situations is met:

  • You are borrowing a VA home loan for the first time.
  • You paid off the previous VA loan in full.
  • You had a short sale on your home but still paid back the VA loan in full.

Applicants with full entitlement are not subjected to any VA loan limits. However, if you have partial or no entitlement, you will be subjected to the limits. In case you wish to borrow more, you can make up the difference by paying the extra as a downpayment.

Summing Up

VA loans are perhaps the best military benefit available to Veterans and military members. You can use this benefit to purchase your first home or even second. To know more, visit us today and get a free quote on how much you qualify for.

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