The VA loan program is offered to eligible veterans who have served a minimum time in uniform. The minimums vary based on date of service, whether the service is active duty, Guard or Reserve, and other factors.

A complete list of eligibility requirements for the VA home loan program can be found at http://www.benefits.va.gov/homeloans/elig2.asp on the VA official site.

Many first time borrowers have common questions. How much, for example, is the VA loan guaranty? According to the VA Regional Office in Roanoke, Virginia, “VA will guarantee up to 50 percent of a home loan up to $45,000. For loans between $45,000 and $144,000, the minimum guaranty amount is $22,500, with a maximum guaranty, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available.”

VA insured loans for more than $144,000 have a maximum guaranty that is the lesser of 25% or 25% of the Freddie Mac conforming loan limit for a single family residence. That amount is subject to change on an annual basis. This amount is for VA guaranteed loans made “for the purchase or construction of a home or to purchase a residential unit in a condominium or to refinance an existing VA-guaranteed loan for interest rate reduction”.

In general, the Roanoke Regional Loan Center says “VA loan applicants may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required. For certain refinancing loans, the maximum loan is limited to 90 percent of the value of the property, plus the funding fee, if required. To determine the reasonable value, VA requires an appraisal of the property.”

When it comes to maximum loan amounts, “There is no maximum VA loan, except that the loan cannot exceed the lesser of the appraised value or purchase price, plus VA funding fee and energy efficient improvements, if applicable.” That said, while the Department of Veterans Affairs doesn’t have a specific dollar amount as the maximum loan, there are effective VA loan limits established by county which change from year to year. You can find a list of county limits at http://www.valoans.com/va_facts_limits.cfm

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