12. VA Guaranteed Loans M/C
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12. VA Guaranteed Loans M/C

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Questions and Answers

What is the maximum guaranty amount available in a VA loan transaction?

  • Depends in part on the loan amount
  • Cannot exceed the borrower’s residual income figure
  • 75% of the price or appraised value (correct)
  • Set by the lender, not the VA
  • How is eligibility for a VA loan determined?

  • A distinguished service record
  • Age, disability, and income level
  • A superior officer’s recommendation
  • Length of active duty service (correct)
  • What is the guaranty amount available to a particular veteran known as?

  • Entitlement (correct)
  • Residual income
  • Guaranty balance
  • Liability
  • For loan amounts over $144,000, what is the maximum guaranty amount?

    <p>25% of the loan amount, up to a maximum of 25% of the Federal Housing Finance Agency conforming loan limit for single-family residences</p> Signup and view all the answers

    How is a veteran’s full guaranty entitlement restored?

    <p>The veteran sells the property and repays the loan in full from the proceeds</p> Signup and view all the answers

    What can a VA loan be used to refinance?

    <p>A VA loan or an FHA loan</p> Signup and view all the answers

    What is the required minimum percentage that the guaranty plus downpayment must equal of the sales price for most lenders?

    <p>25%</p> Signup and view all the answers

    For a sales price of $485,000, how much downpayment must the borrower provide if the guaranty is $113,275?

    <p>$7,975</p> Signup and view all the answers

    What is the general rule for a VA borrower's debt to income ratio?

    <p>41%</p> Signup and view all the answers

    How is residual income calculated for a VA borrower?

    <p>Subtracting gross monthly income from total obligations</p> Signup and view all the answers

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