Though VA does not impose any restrictions on the loan amount that an eligible veteran can borrow, the maximum guaranteed amount cannot exceed $424,100. We can still provide VA financing up to $1 million, however the borrower would need to pay 25% of the difference between the sales price and $424,100 as a down payment. So for example, to purchase an $800,000 home using a VA home loan, the buyer would need to provide a $93,975 down payment ($800,000 - $424,100 = $375,900 x 25% = $93,975). The maximum loan amount for FHA loans can vary according to the county but cannot exceed $636,150 (in high cost areas). The limit can be as low as $275,665 for counties with low housing costs. The USDA does not set a cap on the maximum loan amount, but instead qualification will primarily depend on the borrower’s income. The maximum loan amount for conventional loans varies anywhere in the range of $424,100- $1835,200 depending on the county.
Before applying for a home loan, it is important to know the differences between the available loan programs. Conducting an in-depth research about the pros and cons of each program helps you make informed decisions. However, this is where a true mortgage expert can provide significant value to you through guiding you to the right options for you. Contact us today for a free, no obligation consultation