Maximum Loan Amount

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Maximum Loan Amount
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What is VAs 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
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Calculating Maximum
Purchase Loan
Lesser of purchase price or reasonable value

Up to 6,000 Energy Efficient Improvements

VA Funding Fee
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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
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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
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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
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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
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Calculating Maximum
Cash-Out Refinance Loan
Up to 90 of the reasonable value

Up to 6,000 Energy Efficient Improvements

VA Funding Fee
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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 companys post closing department
  or the investor.

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Maximum Guaranty
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Maximum Guaranty
Effective December 10, 2004, VAs maximum
guaranty for certain loans in excess of 144,000
is 25 of the Freddie Mac conforming loan limit.
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Maximum Guaranty
For purchase, new construction and Interest Rate
Reduction Refinance Loans (IRRRL).
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How does VAs 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
The additional entitlement is not available
for cash-out refinance loans. Only the basic
entitlement may be used.
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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.
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Remaining Entitlement
Can we use it?
Yes! We can!
The lender is responsible for ensuring they have
a marketable loan.
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Calculating Remaining Entitlement
Remember, bonus entitlement is not available
for cash-out refinances.
Bonus entitlement is increased by 50 for loans
in Alaska, Hawaii, Guam and the Virgin Islands.
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Questions?
Contact your nearest VA Regional Loan Center
via telephone or e-mail.
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Reference
VA Lenders Handbook Chapter 3 Sections 3 and 4
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Thank you for your interest in the VA Home Loan
Program!
We appreciate your support!