Can I Borrow More Than the Value of My Home with a VA Loan
The good news for veterans who are VA Loan eligible is the VA does not place a cap on the amount of money you can borrow. However, many veterans ask if they can borrow more than the overall value of the home. Unfortunately, the VA will not back any extra money you obtain that is higher than the value of the home. If you want to obtain more than the house is worth, you will have to negotiate with the private lender without the backing of the VA.
Why Should I Obtain a VA Loan if I cannot Borrow More Than the House is Worth
One of the biggest reasons you should obtain a VA backed loan if you are a qualified vet is the amount of generosity afforded within the loan. The VA does not require that you put any money down on their loans. That is unheard of in the world of conventional loans. You are practically guaranteed the prime interest rate on your loan. The current prime rate stands at 3.5 percent. Most conventional loans for those with a marginal credit score the interest rates can run anywhere from 7 to 10 percent. You can also finance 100 percent of the home’s value with no down payment. This too is unheard of in the world of conventional loans.