Are There Limits for VA Loans? Advice for Dallas Buyers
Before January 2020, there were strict limits on VA loans. But this all changed in mid-2019. The president signed a bill that now allows buyers to borrow amounts above conforming loan limits. However, this is not to say that there are no restrictions for VA loans whatsoever. Loan limits are going to be still in place for veterans with multiple active VA loans, or those who may have defaulted previously. Here’s what you need to know about buying a home with a VA loan in Dallas.
Understanding the Restrictions of VA Loans
VA loans in Dallas, as well as the rest of the country, will now accommodate some of the fanciest properties on the block. But, it doesn’t mean that you get to take out $1 million in mortgage if you’re making under $30,000 annually. There are limitations.
It’s important to remember that the money is coming from banks and private lenders. They will have income restrictions, while also taking into account your credit history, your repayment history, any adverse entries in your credit report, etc. before determining the final number. That’s all the VA would back.
Be Careful to Not Get Carried Away
It is very easy to get carried away if you have VA protection and privilege. After all, if the rate you’re getting is the lowest you would find anywhere, you would naturally want to take out as much of it as possible, especially if you are looking to make a quick profit. But it’s important not to get carried away and only borrow what you need and can afford.
Unless you know what you are doing, stay away from a property that is more than you would need. Property prices go up and down and it is very easy to go under. That’s just what happened to millions of people just ten years ago when the housing bubble burst. A single bad decision can set in motion the chain of events that would eventually wreck your credit and you may also end up losing the house.
Explore Financing Options
Let us help you find the best financing options available. As experts in VA loans in Dallas, we’re well versed with the process as well as the options available to veterans. Our loan officers can answer questions you have about VA loans as well as other available options. Let us help you find the right financing option for your family today.