Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering..

a. Maximum Guaranty Table

The maximum guaranty on a VA loan is the lesser of

·   the veteran’s available entitlement (plus $24,000 for purchase or construction loans or IRRRLs greater than $144,000), or

·   the maximum potential guaranty amount indicated below.

Loan Amount

Loan Type(s)

Maximum Potential Guaranty

Special Provisions

Up to $45,000

All

50 percent of the loan amount

Minimum guaranty of 25% on IRRRLs

$45,001 to $56,250

All

$22,500

Minimum guaranty of 25% on IRRRLs

$56,251 to $144,000

All

40 percent 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

25 percent of the loan amount, with a maximum of $60,000

Cash-out refinances have a maximum guaranty of $36,000

Minimum guaranty of 25% on IRRRLs

Any

Joint Loans

Energy Efficient Mortgages

Construction loans on which construction is incomplete

Supplemental loans

®

®

®

®

See section 1 of chapter 7.

See section 3 of chapter 7.

See section 2 of chapter 7.

See section 5 of chapter 7.