<P> The VA loan allows veterans 103.3 percent financing without private mortgage insurance (PMI) or a 20 percent second mortgage and up to $6,000 for energy efficient improvements . A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA; this fee may also be financed and some may qualify for an exemption . In a purchase, veterans may borrow up to 103.3% of the sales price or reasonable value of the home, whichever is less . Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment . In a refinance, where a new VA loan is created, veterans may borrow up to 100% of a property's reasonable value, where allowed by state laws . In a refinance where the loan is a VA loan refinancing to VA loan (IRRRL Refinance), the veteran may borrow up to 100.5% of the total loan amount . The additional . 5% is the funding fee for a VA Interest Rate Reduction Refinance . </P> <P> VA loans allow veterans to qualify for loan amounts larger than traditional Fannie Mae / conforming loans . Standard VA guidelines state that the VA will insure a mortgage where the monthly payment of the loan is up to 41% of the gross monthly income vs. 28% for a conforming loan assuming the veteran has no monthly bills, although there is no hard limit to the DTI for a VA home loan . Veteran's have been known to be approved with a DTI of up to 80%, if there are other factors that strengthen their loan application . These factors include a low Loan - To - Value (LTV), sufficient residual income, additional income received but not used to qualify for the loan, good credit, etc...</P> <P> The maximum VA loan guarantee varies by county . As of 1 January 2018, the maximum VA loan amount with no down payment is usually $453,100, although this amount may rise to as much as $721,050 in certain specified "high - cost counties ." </P> <P> The original Servicemen's Readjustment Act, passed by the United States Congress in 1944, extended a wide variety of benefits to eligible veterans . The VA loan guarantee program was especially important to veterans . Under the law, as amended, the VA is authorized to guarantee or insure home, farm, and business loans made to veterans by lending institutions . Over the history of the program, 20 million VA home loans have been insured by the government . The VA can make direct loans in certain areas for the purpose of purchasing or constructing a home or farm residence, or for repair, alteration, or improvement of the dwelling . The terms and requirements of VA farm and business loans have not induced private lenders to make such loans in volume during recent years . </P>

The maximum guaranty that the dva will provide for the veteran’s home loan is the
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