| 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. This is currently set at $417,000. Loans over $417,000 would fall under VA Jumbo rules. |
| 2. |
VA loans 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.
| Exception |
Maximum Loan |
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 100 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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Maximum Guaranty Table |
The maximum guaranty on a VA loan is the lesser of:
· the veteran’s available entitlement (which can be increased up to an amount equal to 25 percent of the Freddie Mac single family conventional conforming loan limit for certain loans over $144,000), or
· the maximum potential guaranty amount indicated below. |
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Up to $45,000 |
All |
50% of the loan amount. |
Minimum guaranty of 25% on IRRRLs. |
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$45,001 to $56,250 |
All |
$22,500 |
Minimum guaranty of 25% on IRRRLs. |
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$56,251 to $144,000 |
All |
40% of the loan amount, with a maximum of $36,000. |
Minimum guaranty of 25% on IRRRLs. |
|
Greater than $144,000 |
Must be for:
· Purchase or construction of a home, or
· Purchase of a con-dominium unit, or
· Refinancing with an IRRRL. |
up to an amount equal to 25% of the Freddie Mac single family conventional conforming loan limit. |
Cash-out refinances have a maximum guaranty of $36,000.
Minimum guaranty of 25% on IRRRLs. |
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Note: The percentage and amount of guaranty is based on the loan amount including the funding fee portion when the fee is paid from loan proceeds.
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Qualifying 