Q? about VA housing loan?

How does the VA determine how much one recieves for the housing loan?

7 Answers

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  • 1 decade ago
    Favorite Answer

    Everyone is automatically eligible for up to a $400,000 loan guarantee. But, the VA is NOT the one issuing the loan! For your mortgage you will still have to go through a traditional financial institution, and they will determine how much they are willing to loan you. And most will base it on 25% - 30% of your income. (ex. If you bring home $5000 a month, then they will go with $1400 per month mortgage payment (including PTI), so about $200,000 house.)

    Also, a VA loan will NOT exempt you from mortgage insurance. There are many states who still require mortgage insurance when you put down less than the standard 20%. We have had to have mortage insurance with both of our VA guaranteed homes. (Although we have a life insurance policy on me that is equal to the amount of our loan that we use as our MI)

    Source(s): AF spouse - 20 years
  • 5 years ago

    VA Loan are preferred loan program for members of the U.S. Armed Forces including all active, non-active, National Guard, Reserve and/or retired armed forces members.

  • 1 decade ago

    Call the Dept of VA Regional Office in

    your Area...

    Tell them you want your Home Loan Papers...

    They will send you a Certificate explaining

    how much they will underwrite...

    The VA DOES NOT make Home Loans...

    They "Underwrite THEM"...Guaranteeing

    that part of the loan to your Bank/Mortgage holder.

    The home you are buying must meet

    all of HUD's requirements...and I do mean ALL.

    Go online and Look up VA/Hud homes that are for sale...

    Will save you Thousands...

    guidelines

    Source(s): Retired Marine...
  • Anonymous
    5 years ago

    The VA and NFCU are two different things. NFCU is a credit union for military members and their families. VA doesn't grant the mortgage itself, it only guarantees it. If you want a mortgage then you will have to apply for one through a bank or credit union. Yes credit problems whether through NFCU or any other lender can cause you to not get one.

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  • Anonymous
    1 decade ago

    well you first need a 620 on your credit report. Also they go by your BAH and how much you make there. They will also determine how the house is and make sure it is the price that they are asking.

  • 1 decade ago

    when my hubby comes back from Iraq we will be eligible for up to 400,000 but we both have credit scores well into the 700's so it really depends on you and your service

  • 1 decade ago

    there is one set price the va has

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