Palm Beach County homes cost an average of $499,702, and with a VA loan, you can buy a house with no down payment. If you have full VA entitlement, there aren’t any loan limits when buying a home. However, you’ll be subject to VA loan limits if you don’t have full entitlement.
Home Loan Limits Don’t Apply to Everyone
VA borrowers don’t always have loan limits. So, for example, if you’ve never used your entitlement or you have but reinstated it, there are no loan limits.
The limit to what you can borrow to buy a home in Palm Beach County, FL, is based on what you can afford. Lenders will look at your qualifying factors to determine how much loan you can afford. They’ll also determine the home’s value that you’re purchasing to determine the final loan amount.
Each lender is different, but in general, you must meet the following to qualify:
- Minimum 620 credit score
- Maximum 43% – 50% debt-to-income ratio
- Meet the disposable income guidelines for your area and family size
- Buy a home for primary use
Who Has Full Entitlement?
You have full entitlement of your VA benefits if you meet the following:
- You’re using your VA home loan benefits for the first time
- You’ve used your VA loan benefit but sold the home, paid the loan in full, and petitioned to have your VA benefits reinstated
Without Full Entitlement, There are Loan Limits
If you have used your entitlement before and haven’t reinstated it, you will be subjected to the Palm Beach County VA loan limits of $726,200.
That sounds high, but here’s what it means.
If you don’t have full entitlement, any loan amount above $144,000 may require a down payment. VA lenders typically require at least 25% down, but that doesn’t mean in cash from you.
It can be a combination of your down payment and the VA entitlement. When you have full entitlement, the VA guarantees the full loan and will pay the lender back 25% of what they lost if you default.
Without full entitlement, they will only pay up to your entitlement amount that’s left. Your lender may require the difference between 25% of the sales price and the VA’s guarantee. Plus, if your loan exceeds the FL county loan limits, you must also put down 25% of the amount that exceeds it.
The 2023 VA loan limits in Palm Beach County, FL, only apply if you don’t have full entitlement. So if you used your entitlement responsibly and repaid it, the limits still won’t apply. This means you won’t need a down payment no matter how much you borrow.
However, you may need a sizeable down payment if you don’t have full entitlement. Discuss your options with your VA lender to ensure a VA loan makes the most sense. If you need a large down payment, you may want to consider other loan programs that require a lower down payment and make it easier to afford a home.
Questions About Buying A Home Using A VA Loan?
If you have any questions about buying a home in Palm Beach County, Fl, I encourage you to reach out to me anytime. I have great lenders that will get you pre-approved using your VA Benefits. I Encourage you to Call or Text me @ 561.660.0154 or use the Contact Form below to send me an email.