There are several myths regarding The Department of Veterans Affairs (VA) mortgages. One of the biggest myths is that the maximum VA loan is $417,000. In fact veterans can obtain a VA mortgage up to $1,500,000. VA does not set a maximum amount that an eligible Veteran may borrow using a VA mortgage. They do however set the maximum a veteran can borrower without a down payment based on median home prices reported by the Federal Housing Administration for a particular county.
These VA loan limits range from a low of $417,000, to as much as $1,050,000 per county, without requiring any down payment. However the veteran can still obtain a VA loan that exceeds his/her particular county limit up to $1,500,000 with a small down payment.
Almost all of Pennsylvania counties have loan limits of $417,000. Pike County is the only Pennsylvania county with a higher loan limit of $978,750 without requiring any down payment. However, any VA loan that exceeds the standard county limits of $417,000 would only require a small down payment. Therefore, veterans can still get a VA loan up to $1,500,000 with a smaller down payment than traditional jumbo financing (conventional loans exceeding $417,000.)
The advantages of obtaining VA loans that exceed $417,000 versus acquiring a jumbo loan or an FHA loan that exceeds $417,000 (allowed in some high cost area):
- There is no down payment or a small down payment required instead of a much larger down payment with jumbo loans.
- Lower rates than jumbo loans.
- No mortgage insurance is required regardless of the amount borrowed.
- Regardless of the amount borrowed, all VA qualifying criteria still apply which are far less stringent than jumbo financing.
For more information regarding VA loans up to $1.5 million, VA county loan limits, or how to calculate if a small down payment would be required, call 1st Mariner Bank at 877-733-4411.