Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
There are a few misconceptions when it comes to a VA guaranty and a VA loan. A VA loan is not made by the United States Department of Veterans Affairs. It is made by a bank, a mortgage company or one of various private lenders. A VA guaranty concerns the amount of a VA loan that the VA will guarantee the lender will not lose if a borrower defaults on the loan.
VA Guaranty Limits
When a lender provides a VA loan to a qualified military member, the VA will guarantee only 50 percent of the loan if the loan amount is for $45,000 or less. The VA will guarantee only 40 percent of the loan if it is for an amount between $45,000 and $144,000.
The highest dollar amount the VA will guarantee to repay a lender in the event a borrower defaults on a VA loan is $36,000. However, this is not, of course, the maximum amount a military member can borrow from the lender.
VA Loan Maximum
A VA loan can be obtained for the purchase amount of a home or for the appraised value, whichever is lower. Down payment limitations may apply, which the borrower must clarify with his or her lender before getting the loan.
- How to Get Approved for an FHA Loan despite Bad Credit
- FHA Loans for a First-Time Home Buyer
- FHA Eligibility with Bankruptcy and Foreclosure
- What Lenders Don't Reveal About Home Equity Loans
- 3 Factors that Can Negatively Affect Your Mortgage Application
- 3 Reasons Banks Reject Short Sales
- Second Mortgages: Advantages and Disadvantages
- Alternatives to Getting a 2nd Mortgage
- Short Selling a Rental Property