A veteran wants to use their VA loan benefit to purchase a $500,000 home in an area where the VA loan limit is $400,000. If they make a $25,000 down payment, what amount can they finance with the VA loan?
Correct Answer
A) $400,000
Even with a down payment, the maximum VA loan amount cannot exceed the VA loan limit for the area. The veteran would need to make a down payment of at least $100,000 (25% of the amount over the limit) to purchase this home.
Why This Is the Correct Answer
Even with a down payment, the maximum VA loan amount cannot exceed the VA loan limit for the area. The veteran would need to make a down payment of at least $100,000 (25% of the amount over the limit) to purchase this home.
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