Use of VA Home Loan

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Acceptable Use of a VA Home Loan

VA Home Loans may be used to purchase homes, town-homes, and condominiums (must be a VA approved condo project) including new homes that are to be built.

VA Home Loans are intended for personal home purchases only and are not eligible to be used on rental or investment properties. The Veteran borrower must certify that they or their immediate family intend to personally occupy the home within 60 days of the closing date.

Pre-Qualifying & Loan Amount

In order to determine the Veteran’s maximum loan amount, it is recommended the Veteran contact a lender familiar with the VA Loan Program to get Pre-Qualified. Pre-qualification includes telling the lender about the borrower’s income, assets and liabilities. Using this information the lender representative will be able to estimate the amount of mortgage payment the Veteran can afford, which subsequently calculates an estimated loan amount and purchase price for a home. Pre-Qualifying is not required, but is recommended so the Veteran knows the price range in which he/she should be looking for homes. Also, many sellers or seller’s real estate agents will require a pre-qualification letter from a lender before considering an offer to purchase a home.

Effective January 1st, 2006 the maximum VA Loan amount is $417,000 in all states except Alaska and Hawaii. In Alaska and Hawaii the maximum amount is $625,500. Having VA Loan eligibility does not automatically qualify a veteran for a loan up to these amounts. The Veteran still must qualify for a loan amount based on the income, assets and liabilities of the Veteran and his/her spouse.