Find out how much you can borrow on a VA loan with no money down.
One of the great benefits of a VA home loan is that you can borrow with no money down versus a conventional loan which requires a down payment of at least 20% to avoid paying private mortgage insurance. However, there are limits to the entitlement associated with a VA 0% down home loan.
The Veterans Administration institutes loan limits on how much a veteran can borrow without a placing a down payment on the home. To explain, members of the military are eligible for a basic entitlement of $36,000 and lenders will generally allow veterans to borrow four times that amount to $144,000. If your home costs more than $144,000, the VA will only guarantee $25% of the loan up to the loan limit of $453,100.
For 2019, in certain higher cost counties, the limit could go as high as $726,525 for a single family home. A loan above this amount is considered a jumbo loan and you would need to provide a down payment of 25%.
It’s important to note that these are loan limits and not a guarantee of how much you will qualify for as that depends on your income, credit score, debt-to-income ratio and assets. Also, loan limits can change. Your Freedom Mortgage loan advisor will be able to guide you through the options.
Check out the VA chart PDF file opens in a new window that outlines the limits based on county.