2022 VA Loan Limits | The bank rate

Since the elimination of VA loan limits in 2020, VA borrowers with full entitlement can borrow a larger mortgage without depositing any money. That said, you can’t borrow as much as you want; you will still need to go through the standard loan approval process.

VA loan limits in 2022

In 2020, the US Department of Veterans Affairs (VA) eliminated VA loan limits for eligible veterans, service members, and surviving spouses who are fully entitled. You have a full entitlement – meaning your entire entitlement is available for use – if you meet at least one of the following criteria, according to the VA:

  • You have never used the VA home loan benefit
  • You paid off a previous VA loan in full and sold the property
  • You used the VA home loan benefit, but had a foreclosure or short sale and paid off the VA in full

Borrowers with this level of entitlement do not have to make a down payment and the VA will guarantee the mortgage lender up to 25% of the VA loan if the borrower defaults.

Although VA borrowers with full entitlement are not subject to loan limits, there are limits for borrowers with remaining entitlement, which may include those who have defaulted on a VA loan or those who already have a loan. VA active.

When do VA loan limits apply?

VA loan limits apply if you have a remaining entitlement, meaning part of your entitlement has already been used. According to the VA, you could fall into this category if:

  • You have an active VA loan
  • You have paid off a previous VA loan in full and still own the property
  • You refinanced your VA loan to a non-VA loan and still own the property
  • You had a foreclosure or short sale and did not repay the full VA
  • You had a deed in lieu of foreclosure on a previous VA loan

The loan limit for VA borrowers with remaining entitlement is based on the county where the borrower lives. If the borrower defaults, the VA will only guarantee the lender up to 25% of the county limit less the fee already used.

VA loan limits by county

For borrowers with remaining entitlements, VA loan limits vary by county and are the same as Federal Housing Finance Agency compliant loan limits.

What VA Loan Limits Mean for You

VA loan limits don’t limit how much you can borrow to finance a home – it depends on your mortgage lender and may be based on your credit and other factors. On the contrary, the VA loan limit describes the amount that the VA will guarantee for the lender. If you are approved for a larger mortgage (over $144,000), you are free to borrow beyond these limits, but without full rights, you may be required to make a down payment to do so. In other words, with a down payment, you might be able to borrow more than the county loan limit.

Now that VA loans no longer have limits for fully qualified borrowers, new borrowers no longer have a cap on the amount of a VA loan with no down payment. The VA financing fee, which most borrowers must pay to obtain a VA loan, remains in place, however.

Remember that even if you’re fully eligible and aren’t subject to loan limits, that doesn’t necessarily mean you can get any size VA loan you want. Your lender will still need to assess your credit history, income, and assets to approve you for a loan, and for a specific amount.

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