**DISCLAIMER: All policy information contained in this knowledge base article is based upon the VA loan guidelines. The Veterans administration occasionally makes changes to the VA loan program, so the information given potentially could be out of date. For current up to date information on the FHA loan program, we encourage you to either contact the Veterans Administration directly or ask an Alliance member for further information.
VA Loan Advantages
Credit Score Guidelines
2020 VA Loan Limits
The VA loan limit in low cost areas of the country has been increased to $484,350 in low cost areas, and up to $726,525 in high cost areas of the country. This also includes the higher cost areas of the country too.
Allowable VA Income
VA Jumbo Loans
If you’re looking a loan to purchase a home that exceeds the loan limit in your area you may be able to get a VA jumbo loan.
You will need to pay 25 percent of the amount over the loan limit.
For example if you lived in a low cost area like Charlotte where the loan limits is $484,350.
And you wanted to buy a home that costs $584,350, which is $100,000 over the limit.
You will need to pay 25% of $100,000. So you will have a down payment of $25,000.
2020 VA Debt-to-Income Ratio
The Department of Veteran Affairs does not have a set debt-to-income ratio.
Most Lenders like a DTI ratio at or below 45%. 45% is not a hard stop because there are certain situations where a lender will allow a higher debt-to-income ratio.
Compensating factors for a higher DTI
VA loan Wrap Up
The VA home loan program is an incredible program for eligible veterans.
VA loans are easier to qualify for than conventional loans and have lower interest rates.
VA loans are great for all Veterans, especially first-time home buyers because they offer 100% loans without mortgage insurance.