Money : VA Loans - Getting Started
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VA Loan FAQs and Information



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Q: How much can I borrow?

A: The maximum VA home loan amount is $240,000, which includes the funding fee if rolled into the loan. This maximum amount applies to all jurisdictions in the United States.

Q: How does the VA back my loan?

A: A portion of each loan (called the entitlement) is guaranteed by the Veterans Administration, and protects the lender's investment if the borrower defaults. The VA will guarantee a maximum of 25 percent of a home loan amount up to $60,000.

Q: What is an Entitlement?

A: An entitlement is the amount the VA promises will be paid to the lender if you default on your loan. If that happens, the VA may pursue you to recover those funds. An entitlement is not a cash payment to you or to the bank.

Q: What does it cost for a VA loan?

A: Borrowers must pay a basic funding fee of 2 percent to the VA. (Certain veterans are exempt.) The funding fee may be paid in cash or rolled into the loan. A down payment of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25 percent.

All eligible Reserve/National Guard individuals pay a funding fee of 2.75 percent.

Q: Can I refinance an existing VA loan?

A: You can refinance an existing VA home to lower the existing interest rate if you pay a 0.5 percent funding fee.

If you need more detailed information concerning the VA home loan program, review VA Pamphlet 26-4, VA-Guaranteed Home Loans for Veterans, and VA Pamphlet 26-6, To the Home-Buying Veteran. Get more information on how to qualify for and obtain a Home Loan.

Loan Guaranty personnel at the nearest VA office will also be pleased to answer specific questions and provide any other assistance they can.

 

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