Loan Limits, Guarantee, and Down Payment

Technically, the VA does not set a maximum cap on how much a veteran can borrow; however, they do limit how much they will guarantee. Because lenders usually require the guarantee to cover 25% of the loan value to authorize zero down payment, this effectively creates a "loan limit" for no-money-down financing (often conforming to standard conventional limits). The most distinct feature of a VA loan is the down payment requirement: for loans within these limits, no down payment is required. The veteran can finance 100% of the purchase price.