Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the maximum guaranty amount available in a VA loan transaction?
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?
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?
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?
For loan amounts over $144,000, what is the maximum guaranty amount?
Signup and view all the answers
How is a veteran’s full guaranty entitlement restored?
How is a veteran’s full guaranty entitlement restored?
Signup and view all the answers
What can a VA loan be used to refinance?
What can a VA loan be used to refinance?
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?
What is the required minimum percentage that the guaranty plus downpayment must equal of the sales price for most lenders?
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?
For a sales price of $485,000, how much downpayment must the borrower provide if the guaranty is $113,275?
Signup and view all the answers
What is the general rule for a VA borrower's debt to income ratio?
What is the general rule for a VA borrower's debt to income ratio?
Signup and view all the answers
How is residual income calculated for a VA borrower?
How is residual income calculated for a VA borrower?
Signup and view all the answers
