VA loans are for for men and women who serves in military or the ones retired for whatever reason other than dishonourable discharge. The VA neither gives you the loan nor guarantees you will get it but it pays a specific amount to the lender in the case of default. As the VA accepts to pay the amount you can not, you are responsible for this amount to be paid back to the VA. The main purpose of VA loans is to help veterans to get good opportunities for home financing with competitive interest rates.

If the borrower is not willing to pay a downpayment, lender will limit the loan to $417,000. The VA do not intervene the limits of the loan but it limits the payment by its side. As loan gets bigger, the VA repayment scales down. As the VA makes a separate assessment of the property, the loan amount should not exceed Certificate of a Reasonable Value.