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VA Guaranty Calculation Examples VA Guaranty Calculation Examples

VA Guaranty Calculation Examples - PDF document

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Uploaded On 2016-09-23

VA Guaranty Calculation Examples - PPT Presentation

The following examples illustrate some common situations involving VAmprehensive Due to variations in the e to an individual veteran loan limits for individual counties and purchase prices for h ID: 470048

The following examples illustrate

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��Effective: January 1, 2020Maximum VA GuarantyCalculationTheinformation and examples provided are solely tohelp you calculate the maximum VA guaranty. This document does not supplement, override, or supersede any provisions oflaw, applicable statutes, regulations, or VA policies . The following examples illustrate some common situations involving VA guaranty calculations. They are by no means comprehensiveof all situations due to variations of entitlement available to an individual Veteran, county NoteAll dollar amounts below are simplified for explanation purposes. To see current conforming loan limits by county, refer to the ‘OneUnit Limit’ column in the Federal Housing Finance Agency's maximum loan limit table . Example 1Full Entitlement The maximum guaranty for borrowers with full entitlementis 25 percent of the loan amountLoan Amount: $1,200,000Maximum Guaranty: $1,200,000 × 25% =00,000 Example 2 In this case, the borrower used $,000 of entitlement on prior guaranteedhome loan(not restored). The borrower is seeking topurchase another home with a loan amount of 0,000ountyloan limit of the property is $6,000.$150,00000,000 x $70,000entitlement used 80,000remaining entitlement available50,000 = possible guarantyMaximum Guaranty = $50,000 ��Effective: January 1, 2020 Example 3Partial Entitlement The borrowerused $7,000 of entitlement on a prior VAguaranteed home loan(not restored)The Veteran is seeking to purchase another home with a loan amount of $350,000County loan limit of the property is 00,000. $75,000 ($300,000 x 25%) 70,000 (entitlement used $ 5,000 = remaining entitlement availableMaximum Guaranty = $5,000 Example Entitlement The borrower used $36,000 of entitlement on a prior guaranteed home loan(not restored)They areseekingto purchase another home with a loan amount of ,000County loan limit of the property is $300,000. Since the loan amount not over$144,000the borrower remaining entitlement available. Therefore,thecannot use his/herhome loan benefit to guaranty the loanwithout obtaining restoration of entitlement Example Refinance The borrowerused $36,000 of entitlement on a prior guaranteedhome loan(not restoredThey areseeking to obtain a cashout refinance his/her current VAguaranteedhome loanin the amount of ,000The borrower has no other guaranteed home loanCounty loan limit of the property is $300,000. Loan Amount: $180,000MaximumGuaranty$180,000 × 25% = $45,000ntitlement used maybe restored for purposes of a cashrefinance. Example Onetime Restoration The borrower used $36,000 of entitlement on a prior VA home loan(paidfull / not restored).They are seeking to purchase another home with a loan amount of ,000County loan limit of the property is $300,000. Loan Amount: $180,000Maximum Guaranty:$180,000 × 25% = $45,000time restoration is possible where the prior VA loan has been paidfull, but the borrowermaintains the property from the originalloan. If the Veteran wants to use the benefit in the future for another purchase or cashout refinanc, both properties would have to be disposed of before entitlement can be restored