Understanding VA loan limits
Ever wondered how much you can get for a house using a VA loan? Well, as David explains it in this episode of From Military to Millionaire, VA loan limits vary depending on where you live.
General VA loan limits
According to Pere, the general limit increased in 2019 considerably and it's been going up each year. With the real estate market in such flux these days, the VA loan limit has increased once again. As of 2022, the standard VA loan limit is $647,2000 for most counties in the United States. That’s a huge jump from $548,250 back in 2021. High-cost counties also saw an increase in VA loan limits. Now qualified veterans can get up to $970,800 for a single-family home.
What to Expect
If you want to buy a home over the VA loan limit, you need to do a few things. You'll have to put 25% down at closing. VA home buyers should expect to pay closing costs, which can range from a few hundred to over $3,500 in expensive markets. If you're lucky, closing costs might be paid by the seller or the lender. If the lender pays these costs, it’s often at the expense of a higher interest rate on the loan.
With the VA loan, you have to pay the funding fee, which is 2.51% of the purchase price for first-time home buyers and 3.3% for all subsequent VA loans. Lenders waive this fee for all discharged service members with a 10% disability rate. However, you won’t have to pay for private mortgage insurance (PMI), as this lender’s requirement is waived with the VA loan.
Ready to Learn More?
David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David's book – The No B.S. Guide to Military Life here.
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