The maximum amount you can receive for a VA loan depends on several factors. Your credit score is one of the primary modifiers, which includes any bankruptcies you’ve filed in the past. Some lenders may adjust the maximum amount based on the location in which you want to live. As each county may have different property values and regulations, you may be able to get more or less. However, most lenders will provide a maximum amount for a VA loan at just over $400,000.
Down Payments Can Fluctuate
While some loans may restrict your maximum down payment to approximately $20,000, some lenders will allow up to 20 percent of the purchase price or more. Essentially, you could hand over more than $50,000 depending on the size of the VA home loan for a purchase. While this may be a sizable down payment, it can greatly reduce your monthly expenses.
Loan Length and Rates
The length of the loan and the rates that are currently available will also affect the maximum you can receive. If your income isn’t supportive of the maximum you need, you may not receive the entire amount. While a 15-year loan can help you get the loan paid off quicker, the 30-year term will reduce your monthly payments.
Jumbo loans may require a down payment of 20 percent or more. Some institutions will offer up to a 25 percent down payment in order to help secure those larger loans. As rates and maximum allotments change on a regular basis, it may be difficult to ascertain what your maximum loan will be until you contact a lender today. Depending on your credit and the location, you could be securing a loan for your $120,000 home with less than an 11 percent down payment.