An eligible veteran is allowed a maximum basic entitlement of $36,000 from the Veterans Administration that can be applied toward a home purchase. Most lenders will make a mortgage loan equal to 4X the veteran's available entitlement without a down payment. Veterans can carry over unused entitlement amounts from one transaction to another. For example if a verteran buys a first home for a total price of $100,000, the amount of the entitlement used would be $25,000 and the veteran would have a remaining entitlement of $11,000 that he/she could use toward the purchase of a second home when the veteran is ready to move up. If the vet goes through the VA for the second home he/she would get a credit for the $11,000 remaining entitlement and would need to make up the difference between the remaining entitlement and 25% of the purchase price in cash, to qualify for a VA guaranteed loan.
For a refinance for a veteran, whether for a refinancing of a VA loan or a non-VA loan, the VA will guaranty 100% of the loan amount up to the appraised value of the property, including cash-out refinancings.
For more information about VA loans visit the VA website by following this link. It is a great benefit for the veterans who have served our country!
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