VA Guaranty and Loan Entitlement Calculator

Examples

Example 1: Full Entitlement

Veteran is purchasing a home for $250,000 where the county loan limit is $548,250.

$$\text{Maximum Guaranty} = 25\% \times 250,000 = 62,500$$

VA will guarantee $62,500 on the veteran's $250,000 loan. NO down payment required.

Example 2: Partial Entitlement

Veteran used $62,500 of entitlement on a prior VA loan and is purchasing another home for $200,000 where the county loan limit is $548,250.

$$\text{Possible Guaranty} = 25\% \times 548,250 = 137,062.50$$ $$\text{Remaining Entitlement} = 137,062.50 - 62,500 = 74,562.50$$ $$\text{Maximum Loan Amount} = 74,562.50 \times 4 = 298,250$$ $$\text{Maximum Guaranty} = 25\% \times 200,000 = 50,000$$

NO down payment required.

Example 3: Partial Entitlement and Loan Amount Greater than County Loan Limit

Veteran used $45,000 of entitlement on a prior loan and is purchasing a home for $700,000 where the county loan limit is $678,500.

$$\text{Possible Guaranty} = 25\% \times 678,500 = 169,625$$ $$\text{Remaining Entitlement} = 169,625 - 45,000 = 124,625$$ $$\text{Maximum Loan Amount} = 124,625 \times 4 = 498,500$$ $$\text{Maximum Guaranty} = 124,625$$ $$\text{Maximum Guaranty \% on Proposed Loan} = \frac{124,625}{700,000} \times 100 = 17.80\%$$

Required down payment:

$$\text{Lender required VA guaranty} = 25\% \times 700,000 = 175,000$$ $$\text{Required Down Payment} = 175,000 - 124,625 = 50,375$$

The borrower will have to make a down payment of $50,375 on the loan.