Question:

What is the maximum VA home loan amount?

Answer:

The maximum VA home loan amount is $417,000 in all states except the states of Hawaii and Alaska, where the maximum VA mortgage loan amount is $625,500.

However, some lenders have developed VA loan programs exceeding the allowed VA loan limit under special conditions. The VA loan guaranty is 25% of the loan with VA loan limits set by Ginnie Mae (GNMA) at $417,000. Any customized VA mortgage loan programs will have additional specific requirements from the borrower.

Examples of VA Loans Exceeding the VA Home Loan Amount

Any VA mortgage loan amount exceeding the Ginnie Mae and Freddie Mac conforming limits could be called a VA jumbo loan.

Lenders will most certainly require that a borrower seeking to purchase a home with a VA loan exceeding the VA loan limit of $417,000 either comes up with all the extra amount, or at least part of it.

E.g.: A VA approved loan applicant lives in a high-cost area and the house they are purchasing costs $450,000. It is very likely that the lender demands the borrower to come up with cash to cover the difference between the VA loan limit and the house value - that is, $33,000.

If a VA-approved borrower is buying a house well exceeding the VA loan limit, say, $700,000 the applicant may be required to come up with percentage of the excessive amount over $417,000. It is likely that the lender will require 25% of the excess to be paid upfront and/or have additional requirements. For this particular example, the borrower may have to provide 25% of $283,000 amounting to $70,750.

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