VA guaranteed loans are made by private lenders, such
as banks, savings & loans, or mortgage companies
to eligible veterans for the purchase of a home which
must be for their own personal occupancy. The guaranty
means the lender is protected against loss if you
or a later owner fail to repay the loan. The guaranty
replaces the protection the lender normally receives
by requiring a down payment allowing you to obtain
favorable financing terms.
is no maximum to a VA loan but lenders will generally
limit VA loans to $240,000. This is because lenders
sell VA loans in the secondary market, which currently
places a $240,000 limit on the loans. For loans up
to $240,000, it is usually possible for qualified
veterans to obtain no down payment financing.