maximum loan amount what is vas maximum loan amount? a. $144,000 b. $417,000 c. $325,000 d. none of...
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Maximum Loan AmountMaximum Loan Amount
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
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…
VA guaranteed loans do not have a maximum dollar amount. However, there are some
limitations to loan size…
Calculating MaximumCalculating Maximum
Purchase LoanPurchase Loan
VA Funding FeeVA Funding Fee
Lesser of purchase price or reasonable valueLesser of purchase price or reasonable value
++Up to $6,000 Energy Efficient ImprovementsUp to $6,000 Energy Efficient Improvements
++
Calculating MaximumCalculating Maximum
Construction RefinanceConstruction RefinanceLesser of reasonable value or sum of outstanding
balance of the loan plus allowable discountsLesser of reasonable value or sum of outstanding
balance of the loan plus allowable discounts
Up to $6,000 Energy Efficient ImprovementsUp to $6,000 Energy Efficient Improvements
VA Funding FeeVA Funding Fee
++
++
Calculating MaximumCalculating Maximum
Installment Land Sales ContractInstallment Land Sales Contract
Lesser of reasonable value or sum of outstanding balance of the loan plus allowable discounts
Lesser of reasonable value or sum of outstanding balance of the loan plus allowable discounts
Up to $6,000 Energy Efficient ImprovementsUp to $6,000 Energy Efficient Improvements
VA Funding FeeVA Funding Fee
++
++
Calculating MaximumCalculating MaximumLoan assumed by veteran at an interest rate
higher than the proposed refinanceLoan 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
Lesser of reasonable value or sum of outstanding balance of the loan plus allowable discounts
Up to $6,000 Energy Efficient ImprovementsUp to $6,000 Energy Efficient Improvements
VA Funding FeeVA Funding Fee
++
++
Calculating MaximumCalculating MaximumInterest Rate Reduction Refinance Loan
(IRRRL)Interest Rate Reduction Refinance Loan
(IRRRL)
Existing VA loan balanceExisting VA loan balance
++Up to $6,000 Energy Efficient ImprovementsUp to $6,000 Energy Efficient Improvements
++
VA Funding FeeVA Funding Fee
Allowable closing costs and up to 2% discountAllowable closing costs and up to 2% discount
++
Calculating MaximumCalculating Maximum
Cash-Out Refinance LoanCash-Out Refinance LoanUp to 100% of the reasonable valueUp to 100% of the reasonable value
Up to $6,000 Energy Efficient ImprovementsUp to $6,000 Energy Efficient Improvements
VA Funding FeeVA 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.
• 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.
Maximum GuarantyMaximum Guaranty
Maximum GuarantyMaximum 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.
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*
Freddie Mac Loan Limit (2007)
VA Maximum Guaranty (25% of loan value)
$417,000 Continental US $104,250
$625,500
Alaska, Hawaii, Guam, US Virgin Islands $156,375
*See www.homeloans.va.gov/new.htm for higher cost county loan limits for 2009.
How does VA’s guaranty How does VA’s guaranty work?work?
How does VA’s guaranty How does VA’s guaranty work?work?
*Generally, the lender needs a 25% guaranty in *Generally, the lender needs a 25% guaranty in order to sell the loan on the secondary market.order to sell the loan on the secondary market.*Generally, the lender needs a 25% guaranty in *Generally, the lender needs a 25% guaranty in order to sell the loan on the secondary market.order to sell the loan on the secondary market.
Basic entitlementBasic entitlement: $36,000: $36,000
$36,000 X 4 = $144,000$36,000 X 4 = $144,000
Additional entitlement*Additional entitlement*: : $68,250$68,250
$36,000 + $68,250 = $104,250$36,000 + $68,250 = $104,250$104,250 X 4 = $417,000$104,250 X 4 = $417,000
•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.*
Notes:
*If included in loan amount.
“Remaining Entitlement”“Remaining Entitlement”
*The lender is responsible for ensuring they have a marketable loan.*The lender is responsible for ensuring they have a marketable loan.
Base Entitlement Available
Additional Entitlement Available*
Total Entitlement
Maximum Loan with no
$$/Down
$36,000 (Full entitlement)
$68,250 $104,250 $417,000
$17,500 $68,250 $85,750 $343,000
$8,500 $68,250 $76,750 $307,000
$0 $68,250 $68,250 $273,000
Calculating Remaining EntitlementCalculating Remaining Entitlement
*Bonus entitlement is increased by 50% for loans in Alaska, Hawaii, Guam and the Virgin Islands.
Questions?Questions?Contact your nearest VA Regional Loan Center via
telephone or e-mail.Contact your nearest VA Regional Loan Center via
telephone or e-mail.
Thank you for your interest in the VA Home Loan Program!
We appreciate your support!