j. Examples

Veteran/Nonveteran Loans

Borrowers and Available Entitlement

Total Loan Amount

Vet’s Portion

Maximum Potential Guaranty on Vet’s Portion

Entitlement Charge

------------T=Total

Vet  $36,000  Nonvet  $0

$100,000

$50,000

$22,500

$22,500

Vet $36,000

Nonvet $0

$120,000

$60,000

$24,000

$24,000

Vet  $27,500

Vet  $36,000

Nonvet  $0

$108,000

Total for both vets

$72,000

Total for both vets

$28,800

$14,400

$14,400

T=$28,800

Vet $25,000

Vet $11,000

Nonvet $0

$201,000

Total for both vets $134,000

$36,000

$25,000

$11,000

T=$36,000

Quick Reference For Calculation Used

Step

Action

1

Divide the total loan amount by the number of borrowers.

2

Multiply the result by the number of veterans using entitlement.

3

Calculate the maximum potential guaranty on the portion of the loan arrived at in Step 2, using the maximum guaranty table in section 4 of chapter 3.

4

VA will make a charge to entitlement up to the amount arrived at in Step 3.

·   VA will divide the charge equally between multiple veterans if possible. 

·   Add up to $24,000 per veteran if Step 2 is greater than $144,000.

Note:  The last example on the example table would require a written agreement from the veterans to make unequal charges to their entitlement.