For those with a military background, a VA loan can provide one of the most flexible and cost-effective routes to homeownership. Not everyone is eligible, of course; these home mortgage loans are for those who’ve put in their time in the military, the National Guard, or the Reserve. Military spouses often qualify, as well. And of course, there are some restrictions—both on how much you can borrow and what kind of homes you can buy.

In this post, we’ll take a look at some of those limitations in greater deal, and help you get a feel for what is and isn’t possible with a VA loan.

What’s the Limit on a VA Loan in Los Angeles?

First and foremost, whether you’re looking into an FHA loan, a conforming loan, or a VA loan, there are always going to be limits on how much you can borrow. That borrowing limit depends on a number of factors—including geography.

So what about those who are seeking a VA loan in Los Angeles or the greater Orange County area? The general limit on a VA loan is $679,650—but again, there are a lot of factors in play. For a specific number, make sure you speak with a local home loan professional.

Are There Any Other Limitations on a VA Loan?

In addition to the loan limit, there are some other restrictions on how you can use a VA loan. Again, only those with certain military connections can qualify. What’s more, you can only use VA loans to obtain certain kinds of home.

It has to be a primary residence, for starters—so, you can’t use a VA loan to purchase a vacation property or a rental. And, it has to be a move-in-ready home. Most lenders will not approve you for a VA loan on a “fixer upper,” and there are stringent inspection and appraisal standards your property must meet.

What are the Benefits of a VA Loan?

These limitations are important to note, but so, too, are the potential benefits of a VA loan. Some of the primary ones include:

• You can get a VA loan even if your credit history is iffy.
• You can get a VA loan without having to make a down payment.
• You also don’t have to secure private mortgage insurance, though you may have to pay a one-time loan fee.
• You can enjoy competitive home loan interest rates and flexible terms.

The bottom line is that, within certain limits, there’s really a lot you can do with a VA loan. If you believe you are qualified for one and are interested in securing a loan right here in Los Angeles, we invite you to contact the PNC team at your first convenience.