Requirements & Limits
addition to meeting the service eligibility requirements, the veteran
will have to qualify for the loan. Traditionally, 41% of the military
veteran borrower's gross monthly income could go to their house
payment, plus all other monthly debts combined. A borrower with
good credit may now be able to go a little bit higher (talk to your
loan officer about what you can do).
house must appraise for the loan amount or higher. The appraiser
will issue a Certificate of Reasonable Value, which states the appraised
value. The Department of Veterans Affairs (VA) will not guarantee
a loan for higher than the amount on the certificate. Regardless
of the appraised value, the loan can also not exceed the loan ceiling
for the county the property is located in. The standard loan ceiling
is $417,000, but in many jurisdictions, the ceiling is higher, based
on higher property costs in many cities or counties. A list of loan
ceilings by county can be found here.
There is no limit on the purchase price, as long as the veteran
can pay the amount above the loan ceiling in cash.