How Much Is a VA Loan?

How much is a VA Loan? You may be surprised. The answer depends on a number of factors, including the type of loan, your credit score, and your down payment.

Checkout this video:


When you’re ready to buy a home, a VA loan is likely to be the best mortgage option available. But how much can you actually borrow with a VA loan? The answer isn’t as straightforward as you might think.

The maximum loan amount for a VA loan depends on both the lender’s limits and the VA’s limits. A lender may be willing to lend you more than the maximum amount allowed by the VA, but you would need to make a down payment for the difference between the loan limit and the purchase price of the home.

Unfortunately, there is no easy answer to the question “how much can I borrow with a VA loan?” You will need to speak with a lender to get an accurate estimate of how much you may be able to borrow.

How Much Is a VA Loan?

A VA loan is a loan that is guaranteed by the Veterans Administration. The Veterans Administration does not actually lend the money, but they insure the lender against loss if the borrower defaults on the loan. This means that the lender can offer better terms to the borrower, such as a lower interest rate.

The Maximum Guaranty

The maximum guaranty amount (available for loans over $144,000) is 25 percent of the loan amount up to $113,275,000. The maximum loan amount for a one-unit property is $533,850 in most counties, with the exception of select “high-cost” or “special exception” areas where the limit is $685,550.

Funding Fee

The funding fee is a percentage of the loan amount that the Veterans Administration charges to guarantee loans. The fee can be financed into the loan, which means it will increase the size of your monthly payments, or it can be paid in cash at closing.

The funding fee for first-time VA loan users with no down payment is 2.15 percent of the total loan amount. For each subsequent use of a VA loan, the funding fee is 3.3 percent.

How to Qualify for a VA Loan

The VA loan is a type of home loan that is backed by the US Department of Veterans Affairs. It is available to eligible veterans, service members, and their spouses. The VA loan program offers a number of benefits, including no down payment, no private mortgage insurance, and lower interest rates. In order to qualify for a VA loan, you must have a good credit score, sufficient income, and a certificate of eligibility.


In order to qualify for a VA loan, you must be a veteran, active duty service member, reservist, or National Guard member, and you must have served for at least 90 days during wartime or 181 days during peacetime. You also must have a “certificate of eligibility” from the Veterans Administration. You can get this certificate by completing an online application, or by mailing in a paper application.

Credit Score

There’s no minimum credit score required for a VA loan, but the lender will want to see proof that you have a solid credit history. In general, the higher your credit score, the lower your interest rate will be.

The VA doesn’t have a minimum credit score requirement for their loans, but each lender does. Most lenders require at least a 620 credit score, but there are some who will approve loans for borrowers with scores as low as 580.

If your credit score is on the lower end, you may still be able to get a VA loan, but you’ll likely have to pay a higher interest rate.

Income and Employment History

You’ll need to provide your lender with proof of a steady income and employment history to qualify for a VA loan. This can be in the form of pay stubs, tax returns, and employer verification.

Applying for a VA Loan

You may be eligible for a VA loan if you are a current or former member of the military, or a surviving spouse of a service member. VA loans are available for a variety of purposes, including purchasing a home, making home improvements, or refinancing an existing loan. The VA doesn’t set a minimum credit score for borrowers, but each lender will have their own requirements.

The Application Process

The application process for a VA loan is similar to that of a conventional mortgage loan, with a few key differences. When you apply for a VA loan, you will need to submit evidence of your military service, such as your DD-214 form or your discharge papers. You will also need to provide proof of your eligibility for the VA home loan program, such as a certificate of eligibility from the VA.

Once you have gathered all the required documentation, you will need to complete a loan application and submit it to a lender who participates in the VA home loan program. The lender will then review your application and determine whether or not you qualify for the loan. If you do qualify, the lender will issue a pre-approval letter, which you can use to shop for a home.

The Loan Approval Process

The loan approval process for a VA loan is similar to that of a conventional loan, with a few important differences. Here are the steps you can expect:

1. Pre-qualification: You’ll supply your lender with some basic financial information to determine if you’re eligible for a VA loan and how much you can afford to borrow.
2. Complete a loan application: Once you’ve found a home and been pre-qualified for a VA loan, you’ll need to complete an official loan application.
3. Get a property appraisal: In order to get a VA loan, your home must be appraised by a licensed professional to ensure that it’s worth at least as much as the amount you want to borrow.
4. Obtain final credit approval: Your lender will review your credit history and financial situation one last time before approving your loan.
5. Close on your home: Once everything has been approved, you’ll work with your lender to finalize the details of your loan and close on your home.


As you can see, the answer to the question “How much is a VA Loan?” depends on a number of factors. However, in general, you can expect to pay between 0.5% and 3.3% of the loan amount in interest. Additionally, there may be other fees associated with a VA Loan, such as the funding fee and closing costs.

Similar Posts