The Veterans Administration is not responsible for places any caps or limitations on how much money veterans may borrow. This task is accomplished by lenders, banks, S&Ls, credit unions, or mortgage companies. The question arises, “How much money can I borrow?”
A VA loan has a basic entitlement level of about $36,000. In some instances, the amounts for loans can reach about $60,000, if the total amount exceeds $144,000. The lender will typically offer about three to four times the total amount of this basic entitlement while foregoing a down payment.
Again, it must be emphasized that the lenders and other financial institutions are the parties responsible for the establishment of maximum allowable financing amounts. The VA does not set any maximum amounts that you may borrow with you entitlement. It must be noted that lenders will not usually approve amounts near or above $417,000. The reason for this figure is the fact that lenders will re-sell VA loans on the secondary market, where loan limits have a cap of $417,000.
