|
Unlike other home
loan programs, there are no maximum dollar
amounts prescribed for VA-guaranteed
loans.
Limitations on VA
loan size are primarily attributable to two
factors:
|
1.
|
Lenders who
sell their VA loans in the secondary market
must limit the size of those loans to the
maximums prescribed by GNMA or whatever
conduit they use to sell the loans.
|
|
2.
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VA limits the
amount of the loan to the reasonable value
of the property shown on the NOV plus the
cost of energy efficiency improvements up
to $6,000 plus the VA funding fee, with the
following exceptions.
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Exception
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Maximum Loan
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Interest Rate Reduction
Refinancing Loan
|
•
Existing VA loan balance, plus
• the cost of any energy
efficiency improvements up to $6,000,
plus
• allowable fees and charges,
plus
• up to 2 discount points,
plus
• VA funding fee.
|
|
Regular
refinancing loan (cash-out)
|
•
90 percent of the VA reasonable
value, plus
• the cost of any energy
efficiency improvements up to $6,000,
plus
• VA funding fee.
|
Loan to
refinance:
• A construction loan
• an installment land sales
contract, or
• a loan assumed by the
veteran at an interest rate higher
than that for the proposed
refinancing loan
|
The
lesser of
• the VA reasonable value,
or
• the sum of the outstanding
balance of the loan plus allowable
closing costs and discounts, plus
(For construction loans, "balance of
the loan" includes the balances of
construction financing and lot liens,
if any.)
• the cost of any energy
efficiency improvements up to $6,000,
plus
• VA funding fee.
|
|
Graduated-Payment Mortgage loan
on existing property
|
•
The VA reasonable value, minus
• the highest amount of
negative amortization, plus
• the cost of any energy
efficiency improvements up to $6,000,
plus
• VA funding fee.
|
|
Graduated-Payment Mortgage loan
on new home
|
97.50
percent of the lesser of
• the VA reasonable value
or
• the purchase price, plus
• the cost of any energy
efficiency improvements up to $6,000,
plus
• VA funding fee.
|
|
|
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Qualifying 
