By Marcie Geffner - Bankrate
Most home mortgages have a so-called loan limit, which caps how much a homebuyer can borrow to purchase a home.
The VA loan is an exception.
Instead of a loan amount limit, the VA loan has a loan guaranty limit, says Michael Frueh, former director of the Loan Guaranty Service and current chief of staff at the U.S. Department of Veterans Affairs, or VA, in Washington, D.C.
The difference has major implications for veteran borrowers who want to purchase a home with a VA loan and no down payment. Understanding these implications can mean big savings for some borrowers.