What is the maximum amount an eligible veteran or serviceperson can borrow with a VA home loan?
The lending industry sets the limit on the amount of the VA home loan based on the income and credit of the borrower, the appraised value of the property, and the amount of VA guaranty entitlement the veteran has available. Veterans eligible for the home loan benefit now have $60,000 guaranty entitlement available for the purchase or construction of a home. For a VA cash out refinancing loan, the benefit remains at $36,000. This generally means a maximum loan of $240,000 for a purchase and $144,000 for refinance. However, if you are a veteran refinancing an existing VA backed loan to reduce the interest rate or convert an adjustable rate mortgage to a fixed rate mortgage loan, the loan can cover the payoff of VA’s current backed loan and closing costs. Some lenders may exceed these loan amounts, if the veteran has additional monies for a downpayment or equity in their home when refinancing. We suggest you contact lenders and discuss the VA loan amount, interest rates, closing costs, et
Related Questions
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