Many veterans have wondered what the guidelines are for 100% financing and if there is a limit on the loan amount a veteran can have and still enjoy a no down-payment loan option.
Generally speaking the VA county limit for 100% financing is $417,000. This means a veteran can purchase a home up to $417,000 without being required to make a down-payment. If the veteran already has a VA guaranteed loan they will be limited on going to the max loan amount on their second home.
The exception to the max loan amount of $417,000 applies to homes that are purchased in high cost counties. In these counties the VA will allow their veterans to purchase up to the max loan amount as long as they stay at or below the county limit. Here is a link
where you can search to see if you are in a high cost area.
As an example if you live in Fairfax County Virginia your adjusted max loan amount is $625,000, or if you live in San Diego County California your max loan amount is $477,000. This means you can purchase a home in any of the counties listed on this site up to the max loan amount being required to make a down payment.
If you do not live in a high cost county and would like to purchase above the $417,000 max loan amount you can do so, but the VA would require you to bring in 25% of the difference of your loan amount that is beyond $417,000. As an example if you purchase a home for $500,000 – and do not live in a high cost area – your down payment will be $500,000 – $417,000 = $83,000 * 25% = $20,750. For further questions in regard to high cost county limits, please contact one of our loan representatives 1-877-213-6421 or firstname.lastname@example.org