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Maximum Loan Amount

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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Maximum Loan Amount

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  1. Maximum Loan Amount

  2. 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…

  3. Calculating Maximum Purchase Loan Lesser of purchase price or reasonable value + Up to $6,000 Energy Efficient Improvements + VA Funding Fee

  4. 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

  5. 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

  6. 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

  7. 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

  8. Calculating Maximum Cash-Out Refinance Loan Up to 100% of the reasonable value + Up to $6,000 Energy Efficient Improvements + VA Funding Fee

  9. 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.

  10. Maximum Guaranty

  11. 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.

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

  13. 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.

  14. 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.

  15. “Remaining Entitlement” Can we use it? Yes! We can!* *The lender is responsible for ensuring they have a marketable loan.

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

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

  18. Reference: VA Lenders Handbook Chapter 3 Sections 3 and 4

  19. Thank you for your interest in the VA Home Loan Program! We appreciate your support!

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