VA loan limits for Pennsylvania - 2019

Veteran with wife
According to U.S. Department of Veterans Affairs there were 995,135 veterans living in Pennsylvania in 2010, but only 6,283 VA home loans. The VA loan a great way to purchase a home in Pennsylvania!

One of the benefits of military service is the VA home loan. Eligible veterans are able to purchase a home without a down payment. The VA home loan is a true zero down mortgage!

It should be noted that the Veteran's Administration does not supply the mortgage money directly to the veteran, but works through approved mortgage lenders. As such, the lender may limit the maximum loan amount to maintain the zero down payment.

And, the home seller is permitted to pay ALL closing costs on behalf of the veteran. The seller is NOT required to pay the vet's closing costs, but the allow it. Prepaid expenses like home owner's insurance and property taxes may also be paid by the seller, although, there is a 4% limit (sales price X 4% = seller limitation) on prepaid costs. Calculate the VA loan amount and monthly payment with the VA loan calculator for Pennsylvania.

VA funding fee

Veterans are required to pay a "funding fee" to support the VA mortgage program. The funding fee cost is based on the service eligibility. The cost of the funding fee is calculated as follows:

VA funding fee chart

Example of a regular military veteran with first time use
Loan amount - $100,000
X 2.15% = $2,150.00

The funding fee can be paid in cash at settlement or may be financed with the loan amount.

$100,000 + $2,150.00 = $102,150 Amount financed

How much can I borrow?

The veteran is required to qualify for the VA mortgage like any other loan. The lender will determine the maximum loan amount with a formula called debt to income. The debt to income ratio measures the total amount of monthly debt payments (including the proposed mortgage payment) against the monthly income. For example:

The Veteran's Administration wants a debt ratio of 41% or lower. There are adjustments to the debt ratio that can increase or decrease the debt ratio.

In addition to the standard debt to income analysis, the VA also requires lenders to use a calculation known as "residual income". The residual income formula also includes housing expenses like heating and air conditioning, income taxes and other household expenses along with the monthly debts to determine the maximum loan amount. Residual income calculator

VA home mortgages can be used to:

  • Buy a home, a condominium unit in a VA-approved project
  • Build a house
  • Simultaneously purchase and improve a home
  • Improve a home by installing energy-related features or making energy efficient improvements
  • Buy a manufactured home and/or lot.

How do I apply for a VA home loan?

You apply for a VA loan through a VA approved lender. The Veteran’s Administration does not originate the VA loan. The VA works through VA approved lenders.

How much can you borrow on a VA loan?

Even though the Veteran's Administration does not impose a loan limit with VA mortgages, the VA lenders stay within the lending limit to allow the veteran to purchase (or refinance) a home without a down payment or equity. The limit is established by the Federal Housing Finance Agency (FHFA), and is approved by Congress each year. VA loans that exceed the lending limit are called jumbo VA mortgages and may require a down payment.

The VA lending limits for PA counties are as follows:

VA loan limits for Pennsylvania Counties - 2019

There is no maximum VA home loan limit, however, the Veteran's Administration will only guarantee up to the following loan amounts.

ADAMS 484,350
BEAVER 484,350
BEDFORD 484,350
BERKS 484,350
BLAIR 484,350
BRADFORD 484,350
BUCKS 484,350
BUTLER 484,350
CAMBRIA 484,350
CAMERON 484,350
CARBON 484,350
CENTRE 484,350
CHESTER 484,350
CLARION 484,350
CLINTON 484,350
COLUMBIA 484,350
CRAWFORD 484,350
DAUPHIN 484,350
DELAWARE 484,350
ELK 484,350
ERIE 484,350
FAYETTE 484,350
FOREST 484,350
FRANKLIN 484,350
FULTON 484,350
GREENE 484,350
INDIANA 484,350
JUNIATA 484,350
LAWRENCE 484,350
LEBANON 484,350
LEHIGH 484,350
LUZERNE 484,350
LYCOMING 484,350
MCKEAN 484,350
MERCER 484,350
MIFFLIN 484,350
MONROE 484,350
MONTOUR 484,350
PERRY 484,350
PIKE 726,525
POTTER 484,350
SNYDER 484,350
SOMERSET 484,350
SULLIVAN 484,350
TIOGA 484,350
UNION 484,350
VENANGO 484,350
WARREN 484,350
WAYNE 484,350
WYOMING 484,350
YORK 484,350