10 Questions
What is the maximum guaranty amount available in a VA loan transaction?
75% of the price or appraised value
How is eligibility for a VA loan determined?
Length of active duty service
What is the guaranty amount available to a particular veteran known as?
Entitlement
For loan amounts over $144,000, what is the maximum guaranty amount?
25% of the loan amount, up to a maximum of 25% of the Federal Housing Finance Agency conforming loan limit for single-family residences
How is a veteran’s full guaranty entitlement restored?
The veteran sells the property and repays the loan in full from the proceeds
What can a VA loan be used to refinance?
A VA loan or an FHA loan
What is the required minimum percentage that the guaranty plus downpayment must equal of the sales price for most lenders?
25%
For a sales price of $485,000, how much downpayment must the borrower provide if the guaranty is $113,275?
$7,975
What is the general rule for a VA borrower's debt to income ratio?
41%
How is residual income calculated for a VA borrower?
Subtracting gross monthly income from total obligations
This quiz covers information about eligibility for VA loans, including requirements for disabled veterans, veterans discharged early, and spouses of veterans who died in action. Learn about the Certificate of Eligibility and VA Guaranty.
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