Sponsored Links :
What Is The Limit On A VA Loan
A VA loan is a type of mortgage loan which is guaranteed by the US Department of Veteran Affairs, and since it is a guaranteed loan (at least some percentage of it), the amount is quiet large, although it varies from area to area. |
Also, unlike conventional loans, a VA loan also provides 100 percent financing without payment of a PMI (private mortgage insurance). This also results in a larger loan amount as compared to conventional loans.VA loans without a down payment are very variable, but as of January 1, 2010, the largest VA loan was $417,000. But of course, VA loans are usually handed for purchasing houses in towns or small cities, nowhere near large cities. In such rare cases, VA loans can sometimes go as far as a million dollars or more if the area where the house is being purchased is designated as a high cost county.
A VA loan also means that the buyer does not have to incur the closing cost of the house either, provided it does not exceed 4 percent of the sale price of the house. The cost covered by the VA in case of defaulting also varies, but is around $36,000 for the usual loan limit, which is $144,000. For loans exceeding this amount, the percentage of entitlement received also considerably reduces, from around 30 percent to only 25 percent.
In conclusion, there is no such limit on a VA loan, and the loan amount differs from one area to another, depending on real estate prices and the price of sale of the house concerned.
More Articles :
|
