In this article we offer some answers and clarifications to common questions about VA home loans in New Hampshire.
VA Loan Limits and Purchase Price Limits – What’s the maximum?
The VA does not have a maximum loan amount or purchase price limit. You can borrow a million dollars on a VA loan if you want—assuming you meet the income, credit, cash, and collateral requirements. What the VA does limit is the amount of their guarantee, which is also known as the eligibility.
VA Loan Eligibility – How does this impact how much can you borrow?
IF you have your Certificate of Eligibility, it likely says your “basic entitlement” is, $36,000, which will normally allow you to borrow 4 times that amount without a down payment, or in this case, $144,000. In most New Hampshire counties, your VA entitlement will automatically be increased to $104,250 for a maximum VA loan of $417,000. In NH counties with high real estate prices, you may be eligible to borrow up to $523,250 without a down payment. Please contact us for current county-by-county limits.
VA Loans for Second Homes – If you have a VA loan now, can you get another one?
Yes, you may qualify for another VA two different ways. First, you may still have “remaining entitlement” to use for another VA loan. As a rule, your remaining entitlement and any cash down payment must be at least 25% of the new home purchase. The second way to qualify for a VA loan is with the sale of your current home whereby your full eligibility will be reinstated.
VA Lenders – Who actually loans the money?
The VA doesn’t lend the money to you for your VA loan. The VA only provides a guarantee to the lender that the VA will cover the cost of losses due to default by the veteran. It’s the VA guarantee that gives the lender confidence to provide 100% financing. There are several ways to structure a VA loan. We can help identify which program will be right for your situation.
If you are a veteran and believe you meet the eligibility requirements for the VA, please contact Charley at (603) 471-9300 or Apply for VA Loan to get started with guidance on eligibility and information on the latest mortgage rates.