Easier to Qualify

In order to determine the Veteran’s maximum home purchase amount, it is recommended the Veteran contact a lender familiar with the VA Program to get Pre-Qualified. Pre-qualification includes the lender reviewing the borrower’s income, assets and liabilities. Using this information, the VA Specialist will be able to estimate the amount of mortgage payment the Veteran can afford, which subsequently calculates an estimated loan amount and purchase price for a home.

The conventional VA Mortgage limit is $424,100. In certain high cost areas, the amount may be extended based on FHA guidelines for the median home price of the county in which the home is located. Veterans may also increase their loan amount by utilizing the high balance VA mortgage option which requires a down payment. This is also known as a VA Jumbo Loan.

Having VA eligibility does not automatically qualify a veteran for a mortgage up to these amounts. The Veteran still must qualify based on the income, assets and liabilities of the Veteran and his/her spouse. Veterans should pre-qualify with a VA Specialist to determine their maximum home purchase amount.

VA-eligible borrowers must qualify for the loans they obtain. Veterans (and co-borrowers, if joint) must have eady and ample income and satisfactory credit. Lenders are given some flexibility to decide whether a borrower is a safe credit risk within VA guidelines. VA-approved lenders may set their own credit score minimums. The VA recommends borrowers have no more than 55% debt-to-income ratio and at least enough residual income to cover typical living expenses. VA Streamline refinance loans may not require income and credit re-qualifying.

While other qualification requirements may apply, depending on the loan program and lender, when the four basic loan approval requirements are met, the applicant(s) will usually qualify for their VA loan. Loan amounts can vary based on each VA-eligible borrower’s entitlement and ability to pay.