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.
There 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.