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Maximum Loan Amount. What is VA’s maximum loan amount?. a. $144,000 b. $417,000 c. $325,000 d. None of the above. VA guaranteed loans do not have a maximum dollar amount. However, there are some limitations to loan size…. Calculating Maximum. Purchase Loan.

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what is va s maximum loan amount
What is VA’s maximum loan amount?

a. $144,000

b. $417,000

c. $325,000

d. None of the above

VA guaranteed loans do not have a maximum dollar amount. However, there are some limitations to loan size…

calculating maximum
Calculating Maximum

Purchase Loan

Lesser of purchase price or reasonable value

+

Up to $6,000 Energy Efficient Improvements

+

VA Funding Fee

calculating maximum4
Calculating Maximum

Construction Refinance

Lesser of reasonable value or sum of outstanding balance of the loan plus allowable discounts

+

Up to $6,000 Energy Efficient Improvements

+

VA Funding Fee

calculating maximum5
Calculating Maximum

Installment Land Sales Contract

Lesser of reasonable value or sum of outstanding balance of the loan plus allowable discounts

+

Up to $6,000 Energy Efficient Improvements

+

VA Funding Fee

calculating maximum6
Calculating Maximum

Loan assumed by veteran at an interest rate higher than the proposed refinance

Lesser of reasonable value or sum of outstanding balance of the loan plus allowable discounts

+

Up to $6,000 Energy Efficient Improvements

+

VA Funding Fee

calculating maximum7
Calculating Maximum

Interest Rate Reduction Refinance Loan (IRRRL)

Existing VA loan balance

+

Up to $6,000 Energy Efficient Improvements

+

Allowable closing costs and up to 2% discount

+

VA Funding Fee

calculating maximum8
Calculating Maximum

Cash-Out Refinance Loan

Up to 100% of the reasonable value

+

Up to $6,000 Energy Efficient Improvements

+

VA Funding Fee

reminder
REMINDER!
  • VA does not have a maximum dollar amount for the VA-guaranteed loan.
    • However, the lender generally needs a 25% guaranty from VA in order to sell the loan on the secondary market.
    • If you are unsure if you have a marketable loan, speak to your company’s post closing department or the investor.
slide11

Maximum Guaranty

Effective December 10, 2004, VA’s maximum guaranty for certain loans in excess of $144,000 is 25% of the Freddie Mac conforming loan limit.

maximum guaranty
Maximum Guaranty*

*See www.homeloans.va.gov/new.htm for higher cost county loan limits for 2009.

slide13

How does VA’s guaranty work?

Basic entitlement: $36,000

$36,000 X 4 = $144,000

Additional entitlement*: $68,250

$36,000 + $68,250 = $104,250

$104,250 X 4 = $417,000

*Generally, the lender needs a 25% guaranty in order to sell the loan on the secondary market.

slide14

Notes:

  • The maximum guaranty table is located in Chapter 3, section 4a of the VA Lenders Handbook
  • The percentage amount of guaranty is based on the loan amount including the funding fee.*

*If included in loan amount.

slide15

“Remaining Entitlement”

Can we use it?

Yes! We can!*

*The lender is responsible for ensuring they have a marketable loan.

slide16

Calculating Remaining Entitlement

*Bonus entitlement is increased by 50% for loans in Alaska, Hawaii, Guam and the Virgin Islands.

slide17

Questions?

Contact your nearest VA Regional Loan Center via telephone or e-mail.

slide18

Reference:

VA Lenders Handbook

Chapter 3

Sections 3 and 4

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