Are there income limitations or loan amount limits on VA loans?
Answer There are no income limitations on the high end, but there are limitations on the lower end. The VA has something called a “residual income” requirement to ensure that you and your family have enough money left over each month after paying all your debt and housing expenses. So even with a good credit score, some veterans are denied financing or simply not pre-approved due to the “residual income” calculation. There are no loan amount limits for VA loans, however, as of January 2006, the max loan amount without a down payment was $417,000. Over that amount, you would typically have to put down 25% of the overage. So, the required down payment on a $517,000 house would be $25,000. This assumes you have full eligibility for the VA program.
