When you decide to use a VA Loan, you may be excited about the prospect…
The VA Loan allows Veterans, service members, military Reservists, National Guard members, and some military spouses to purchase a home without a down payment. This 0% down payment home loan is a huge benefit available to those who are eligible.
VA Loan Limits
There are limits to the amount of money that the VA will cover as well as limits to the amount that individual borrowers can get approved to borrow from their lender. The standard VA Loan amount for 2023 is $726,200. This is an increase of almost $80,000 from 2022 amounts. In some high-cost-of-living areas, the amount increases to $1,089,300. This is based on county and is pre-determined by the VA.
You can purchase a home for more than the limits and still not put any money down. If this is your first VA Loan, there is no limit to the entitlement on that single purchase. If you already have a VA Loan and are purchasing another home with a VA Loan, you are limited to the overall entitlement between the two loans. This most often occurs when a service member uses their VA Loan to purchase a home then later moves and wants to purchase a home in their new location while renting out their original home.
To take advantage of the entire VA Loan amount, you do need to qualify based on your income and credit history. Once you have your Certificate of Eligibility (COE) from the Department of Veterans Affairs that says that you are eligible for the full VA Loan, your lender will evaluate your approval amount separately. It can be a good idea to get preapproval from your lender simultaneously with getting your COE. That way, you have all the information and approvals that you need to get the ball rolling.