**Title: Understanding VA Loan Limits for 2024: Essential Information for Homebuyers**
**Introduction**
A VA loan is one of the most valuable benefits available to eligible Americans who have served or are currently serving our country. Each year, VA loan limits are updated, and understanding these limits can help you navigate the home buying process more effectively. This article will explain when VA loan limits apply and what you can expect in 2024.
**Are There Loan Limits on VA Loans?**
Technically, there are no limits to VA loans themselves, but there are limits to how much the VA will guarantee. The VA guarantees up to 25% of the loan amount for lenders if you default on your loan. This guarantee amount depends on your VA entitlement.
For this discussion, VA loan limits refer to the amount you can borrow without making a down payment.
**VA Loan Entitlement and VA Mortgage Loan Limits**
Most people obtaining a VA loan have whats called full entitlement. If you have full entitlement, as of 2020, there is no loan limit. The VA will guarantee 25% of whatever amount a lender approves you for.
**How Do You Know If You Have Full Entitlement?**
You have full entitlement if any of the following apply:
– Youve never used your VA loan entitlement.
– Youve used your entitlement to buy or refinance a property previously, but youve since sold and fully paid off your VA loan.
– You had a previous VA loan that wasnt fully paid off due to foreclosure or short sale, but youve since fully repaid the VA.
– You paid off a VA loan without selling the property. This can restore your entitlement one time.
**What If You Dont Know If You Have Full Entitlement?**
If youre unsure about your entitlement status, check your VA Certificate of Eligibility (COE). It will state your basic entitlement as $36,000 if you have full entitlement. This figure is based on an outdated average home price of $144,000. The VA recognizes the concept of bonus entitlement, so the $36,000 figure isnt limiting the amount youll qualify for.
**What If You Dont Have Full Entitlement?**
If your COE shows a number greater than zero but less than $36,000, you have remaining entitlement, also known as impacted entitlement. In this case, you are subject to a loan limit if you want to buy a home without a down payment.
Where loan limits apply, the VA uses equations based on conforming loan limits for conventional loans. These limits depend on your location and the number of units in the home youre buying. For 2024, the standard conventional limit for a one-unit property outside of high-cost counties, Alaska, or Hawaii is $766,550.
**VA County Loan Limits**
In high-cost counties, higher limits are applied in VA formulas. For example, in the New York City area, a one-unit home can have a mortgage as high as $1,149,825 without moving to a jumbo loan.
Most lenders, including O1ne Mortgage, use county loan limits as the cutoff for a VA jumbo loan. With full entitlement, you may not need a down payment, but lending requirements may be stricter. O1ne Mortgage requires a median FICO® Score of 640 or better for a VA jumbo loan.
**What Is a VA Loan?**
A VA loan is a benefit of US military service, available to eligible active-duty service members, veterans, reservists, and qualified surviving spouses. VA loans are backed by the US Department of Veterans Affairs.
**Types of VA Loans**
There are several types of VA loans with numerous benefits:
– **Purchase:** Buy or build a home without a down payment in most cases. At O1ne Mortgage, construction must be completed before closing.
– **Refinance:** Refinance from a different loan type into a VA loan. VA loans allow you to convert 100% of your equity into cash.
– **VA Streamline:** Lower your rate and change your term on an existing VA loan. These loans often dont require an appraisal and have a reduced funding fee.
– **VA Jumbo:** For loan amounts higher than traditional conforming limits. O1ne Mortgage offers VA jumbo loans up to $2 million, with no down payment required for loans up to $1.5 million.
– **Native American Direct Loan (NADL):** Direct loans from the VA to eligible Native American service members and veterans for homes on tribal land, with interest rates starting at 2.5% on a 30-year fixed mortgage.
**Requirements for VA Loans**
To qualify for a VA loan, you need:
– **Certificate of Eligibility (COE):** Verifies youve met minimum service requirements. O1ne Mortgage can help you obtain your COE.
– **Credit Score:** O1ne Mortgage requires a minimum median FICO® Score of 580, though this can vary.
– **Debt-to-Income Ratio (DTI):** Your DTI can be as high as 60% with a fixed-rate loan at O1ne Mortgage.
– **Occupancy:** The home must be your primary residence.
**Mortgages and VA Loan Limits**
VA loans are forgiving for borrowers with less-than-perfect credit. You can get a VA loan after Chapter 7 bankruptcy or foreclosure in 2 years. If youve had a foreclosure or short sale, you might need a down payment based on your maximum entitlement, which is 25% of your loan limit.
For those with impacted entitlement, the VA guarantees the lesser of 25% of the loan amount or 25% of the county loan limit minus the amount of entitlement not restored. Lenders, including O1ne Mortgage, require a combination of entitlement and down payment equal to 25% of the loan amount.
**Mortgages and VA Home Loan Limits: An Example**
Consider Casey, who wants to buy a $480,000 home with $80,000 of unrestored entitlement. The conforming loan limit in Caseys area is $766,550. The VA guarantees the lesser of 25% of the loan amount ($120,000) or 25% of the county loan limit minus the unrestored entitlement ($111,637.50). Therefore, Casey would need an $8,362.50 down payment.
Alternatively, Casey could consider an FHA loan with a 3.5% down payment or a conventional loan with a 5% down payment, though qualifying might be harder if the impacted entitlement resulted from foreclosure or bankruptcy.
**The Bottom Line**
If you have full VA loan entitlement, there is no VA loan limit, and the VA will guarantee 25% of your loan amount. Lenders use conventional loan limits to determine VA jumbo loans, which may have stricter requirements.
If you have impacted entitlement, work with a Home Loan Expert to understand your options. Most lenders require at least 25% of your loan amount to be covered by entitlement and down payment. If this isnt feasible, consider other loan options.
Explore your mortgage options and apply for initial mortgage approval today. Visit [O1ne Mortgage Inc.](https://o1nemortgage.com) or call us at 888-372-8820.
**Keywords:** VA loan limits 2024, VA loan entitlement, VA mortgage, VA jumbo loan, O1ne Mortgage Inc., VA loan requirements, VA home loan, VA refinance, VA Streamline, Native American Direct Loan, mortgage options, home buying process.
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