Typically, most VA Loans are capped at $417,000; however, in some areas with higher costs of living, it is possible to attain a loan for a much greater amount – even without making a down payment. If you would like to find out what the limits are in the area that you are looking to buy, then call us today at 909.786.1584.
The Funding Fee
The VA Funding Fee goes directly back into the VA to allow for future military members to receive the same advantages that others are implementing today. The fee itself varies depending on various circumstances, but typically falls between 2% and 3.5% of the home price. This fee can also be rolled in to the total loan amount. Note that those with service-related disabilities are not required to pay this fee.
Anyone who wants to use a VA Loan must have their Certificate of Eligibility (COE). This paperwork comes from the Department of Veterans Affairs and delineates what VA entitlements you have. Remember that you do not need this documentation to begin your loan process and that we can help you to get this paperwork quickly.
In order to obtain a VA Loan, you will have to have residual income left after paying your major monthly debts – including your mortgage payment. Residual income covers expenses like food, gas, transportation, and other common needs. Notably, the VA Loan program has a very low foreclosure rate because of this requirement.
- Any veterans who apply for a VA Loan must not have been dishonorably discharged
- When applying, you must pass the credit score requirements of the borrower.
- Your debt-to-income ratio must also satisfy the borrower’s requirements.