VA loans allow qualified veterans, active duty personnel, and surviving spouses to buy homes without a down payment. The Department of Veterans Affairs does not limit how much a veteran may borrow. In the past however, the VA limited its loan guaranty amount, which effectively limited the mortgage loan amount you could get if you made a 0% down payment. New rules have eliminated the guaranty amount limits for veterans with full VA home loan entitlement!
Rules starting January 1, 2020
Veterans who have full entitlement can now get approved for a VA loan with no down payment and no maximum home price. Lenders may still limit the mortgage amounts they offer veterans based on income, finances, credit score, and other factors. The new rules do not guarantee veterans will be approved for larger mortgages. They just remove the old guaranty limits for veterans with full VA home loan entitlement.
What does “full entitlement” to a VA Loan mean?
Full entitlement means you do not have an active VA loan and can use your full benefits when applying for a mortgage. You can also restore full entitlement by paying off your current VA loan or having the loan assumed by another qualified veteran.
If you have an active VA loan, you may qualify for a “partial entitlement” that you can use on a second loan. Loan limits will continue to apply to the second loan, however.