# Calculating the Maximum VA Loan Amount in the Tampa Bay Area – Mike Baralt McCaughan Mortgage

Calculating the maximum VA loan amount in Tampa Bay does not have to be a chore.  When a U.S. Veteran receives his or her Certificate of Eligibility if they have a honorable discharge, full VA benefits and have not previously used their entitlement to purchase a home with VA financing, chances are they will have a basic entitlement of \$36,000.

Unless you are familiar with VA financing you may or may not be aware that VA multiplies the entitlement by 4 to reach a basic entitlement of (\$36,000 X 4) = \$144,000. For Veterans purchasing a home in excess of \$144,000 VA will offer a bonus entitlement of \$68,250 for home purchases in the Tampa Bay area. So the maximum VA loan amount with 100% financing is (\$36,000 + \$68,250 = \$104,250) (\$104,250 X 4) = \$417,000.

Should the Veteran wish to purchase a home greater than \$417,000 and obtain VA financing. They will be required to make a down payment of 25% of the difference. If the sales price is \$500,000 then the Veteran's sales prices is \$83,000 greater than the maximum 100% loan amount of \$417,000 in the Tampa Bay area so they will be required to make a down payment of \$83,000 / 4 or \$20,750 and will have a base loan amount of \$479,250 on a \$500,000 purchase. Since VA guarantees the top 25% of the loan amount any loan in excess of \$417,000 will require a 25% down payment from the Veteran.

Should the Veteran have "Partial Entitlement" due to owning another VA financed home; a prior foreclosure; or a default as a result of a VA loan prior to March 1, 1988 when VA allowed other borrower's to assume existing VA loans or "non-qualifying" VA assumptions they can still apply for a VA home loan.

Veteran's with partial entitlement can multiply their basic entitlement by 4 to reach their maximum VA loan amount below \$144,000. So if a Veteran has a remaining entitlement of \$20,000 then their maximum 100% VA loan including the VA funding fee (VA's upfront mortgage insurance) is (\$20,000 X 4 =) \$80,000. If the Veteran wishes to purchase a home between \$80,000 - \$144,000 then they VA will require a down payment. For example if the home is selling for \$120,000 then take the sales price of \$120,000 X 75% + the remaining entitlement of \$20,000 to establish a maximum mortgage amount of \$110,000 including the VA funding fee.

If that same Veteran purchases a home over \$144,000 then the bonus eligibility of \$68,250 would kick in and the Veteran would qualify for a 100% loan of \$68,250 (bonus entitlement) + \$20,000 (remaining eligibility = \$88,250 X 4 = \$353,000.

So bonus entitlement may make the difference between whether a Veteran borrower will receive 100% financing or not. Should you need assistance with a VA home loan, please contact Mike Baralt at 727-797-0600 or mike@mmclw.com should you need assistance in calculating a maximum VA loan amount in the Tampa Bay area.

McCaughan Mortgage Company is a family owned and operated Florida mortgage lender since 1953 with offices in Clearwater, Fort Myers and Miami.

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Michael Baralt

McCaughan Home Lending

McCaughan Home Lending, A Division of Hamilton Group Funding

Office Phone: (727) 797-0600

Cell Phone: (727) 742-2691

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