a. Does VA have Maximum Loan Amounts (continued)

Exception

Maximum Loan

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.

Reference:  See section 6 of chapter 6.

Graduated Payment Mortgage loan on new home

97.5 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.

·   Reference:  See section 6 of chapter 7.