The VA no longer limits the size of loans for fully entitled VA eligible borrowers. There is no set loan limit on home price or loan amount with a VA home loan. Did you know that a veterinarian can now buy a house for up to a million dollars without any down payment? When you're considering buying a home and using your VA home loan benefit, one of the first questions you want answered is how much can I qualify for? VA loans are collateralized, which means that any loan approved by the VA lender has a government-backed guarantee of 25% of the loan amount. As long as the lender follows established VA lending guidelines, the guarantee is in effect.
The VA does not approve the loan, but it sets out specific rules that lenders must follow to receive the VA guarantee. One of those rules limits the amount you can borrow based on a formula called debt-to-income ratio, or simply debt ratio. If you plan to keep the property permanently, you should know that your ability to obtain another VA loan may be affected by whether you have any remaining money left for the entitlement.