If you are eligible, using a VA loan to purchase your next property may be one of the best loans available today. In San Diego County the maximum VA loan is $537,500. What that really means is that you can buy a home for that amount and make a zero down payment. What if you want to purchase a $800,000 home? Can you still use a VA loan? The answer is yes; however a down payment will be required. That down payment would be approximately $65,625 or approximately 8% of the purchase price. That’s still a lot better than most conventional loans. Unlike low-down-payment loans from Fannie Mae, Freddie Mac and FHA, there are no monthly mortgage insurance premiums. There is an upfront funding fee that depends on the amount of the down payment. Also FICO score requirements are lower than conventional loans. Underwriters will look closely at the applicant credit report, verify income, can be flexible on sellers contributions (credits to buyer), and can stretch debt-ratios. The VA loan guaranty to the lender is limited to the lesser of 25% of the county loan limit or 25% of the loan amount. But any loan amount over $537,500 will likely require a down payment per the lender. So where do you start? Contact a lender first. Most major lenders offer VA loans. They will help you with the process including determining your eligibility. Below are some links to help you get started.

VA Guaranty Home Loan Program

Pre-Loan Frequently Asked Questions