VA Myth - VA loans are only available to $726K (or $417K, $424K, or $453K, $484k, $548k, $647k, $726K, or even $1m)
A common myth we hear with VA Loans is that they don't work for your area, the loan amounts are too low for your area, or that Sellers aren't accepting VA Offers. In the past this was true, but with VanDyk Mortgage, this is no longer true. Please see our VA Loan Limits page for details on your county limits.
The nationwide VA Loan Limit for 2023 is $726,200 (some counties qualify for higher VA Loan Limits).
However, Veterans with full Entitlement available (IE no charges against VA loan entitlement) have NO VA Loan Limit. Yes, I said it, Veterans with full entitlement available have NO VA loan limit. You do have to qualify for the loan however, but it is based on your personal financial situation. We cap VA loans at $2m. A charge against entitlement can be from a current VA Loan, a VA loan that has been paid off, but the property is still owned, or a charge from a Short Sale or Foreclosure on a VA Loan.
VA Loan Amounts above $726,200 are called VA Jumbo Loans or VA High Balance Loans. While many counties in the country have a VA Loan Limit of $726,200 amount, that isn't the highest VA loan available for that county. The VA Loan Limit is basically the limit for a zero down payment VA Loan in that respective county for Veterans with partial entitlement available (IE they have a current charge against entitlement).
VanDyk Mortgage offers VA loans up to $2,000,000 in all the states we serve to qualified Veterans. What changes is the amount of required home equity or down payment. Each case is unique.
In counties where the loan limit is lower than your purchase price or refinance loan amount, you may have to have equity (for a VA Jumbo refinance) or put a down payment (for a VA Jumbo Purchase).
So what is the benefit of using a VA loan in this scenario? Lower down payments than conventional alternatives, fixed rates, no Mortgage Insurance, lower equity requirements for Refinances, more flexible credit qualification, shorter wait periods after Bankruptcy, Foreclosure, and Short Sale. Let's say you live in a county where the VA loan limit is $726,200 (such as Riverside, Fresno, or San Bernardino counties in California). You want to purchase a home that is $800,000 with a little of down payment possible. Assume that you have full VA eligibility & fully restored Entitlement. VanDyk Mortgage will allow a VA loan in this scenario up to $800,000 requiring no down payment. If you have a current VA loan charged against entitlement, we can help you calculate how much down payment will be required. If that current VA Loan was originally $200K, this would result in a $50K charge against entitlement. So the down payment requirement for Riverside, Fresno, or San Bernardino county would be $68,450 or 8.56%. The combination of remaining entitlement and down payment gives the VA Lender a 25% VA guaranty figure, which is the goal. The goal of the VA calculation is the reach a guarantee figure of 25% of the loan amount. This can be a combination of the VA Entitlement and a down payment.
Here is the math to figure this out:
1. Take your county loan limit (in this case $726,200) and multiply times 25% to reach your maximum entitlement and guaranty available ($726,200 x .25 = $181,550)
2. Now subtract the $50K of entitlement currently charged, result $131,550 of entitlement available.
3. Take your purchase price and multiply times the minimum guaranty required. ($800,000 X .25 = $200,000) ** since this figure is higher than your maximum guaranty and entitlement from #1, we must now figure out how to handle the shortage.
4. Take #3, the Minimum required guaranty ($200,000) and subtract the available guaranty and entitlement for you ($131,550) and it yields us $68,450.
$68,450 represents the minimum required down payment for purchasing a $800,000 property in a county with a VA loan limit of $726,200 for a Veteran or Active Duty Service Member with partial Entitlement available. $68,450 is a 8.56% down payment. Now that is a huge benefit for our Veterans.
This is far superior to the conventional loan alternatives or even FHA loans. So if your bank tells you that you need to put more money down for your VA Loan, or suggests a conventional loan, Call VanDyk Mortgage and go with a VA loan instead. You will be glad you called.
Many VA Lenders cap their VA Loans at $417K, $424,100, $453,100, $484K, $548k, $647k, $650K, $726K, $729K, or $1m. We offer (and close) VA Jumbo Loans over $726,200 all the way up to $2m, VA Jumbo Loan over $424,100, VA Jumbo Loan over $453,100, VA Jumbo Loan over $647,200, VA Loan over $726,200, VA Jumbo Loans over $729,750, and VA Jumbo Loan over $1m (yes, VA High Balance Loans over $1,000,000).
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VanDyk Mortgage is a VA Direct Lender (since 1987) offering VA Loans such as VA purchase loans, VA Streamline Refinance, VA IRRRL, VA Refinance Loans, VA Jumbo purchase loans, VA Jumbo Refinance Loans, VA Jumbo Streamline Refinance loans, VA Jumbo IRRRL , VA Mortgages of all types. As a Government Direct Lender, VanDyk Mortgage is also a HUD Full Eagle FHA Direct Endorsement Underwriter, ie FHA Direct Lender offering FHA Loans such as FHA Purchase loans, FHA Refinance, FHA Streamline Refinance, FHA 203K Streamline Rehab loans, FHA Jumbo, FHA Jumbo Purchase, FHA Jumbo Refinance, FHA Jumbo Streamline Refinance, FHA mortgages of all types. We offer FHA & VA loans in California, Washington, & More.
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