Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering..

a. Does VA have Maximum Loan Amounts

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 2 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.   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.

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.

(Lenders must use VA Form 26-8923, IRRRL Worksheet, for the actual calculation.)