Sam Frank is a retired Army officer who wants to purchase a new home using a VA loan. In 2000, Sam used his VA guarantee of $36,000 when he purchased his current home. Based on the VA's maximum guarantee of $104,250 and his partial eligibility, how much of a loan can Sam get with no money down?

a) $68,250

b) $155,000

c) $208,500

d) $273,000

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Odin Bean

5 April, 20:50

Sam Frank is a retired Army officer who wants to purchase a new home using a VA loan. In 2000, Sam used his VA guarantee of $36,000 when he purchased his current home. Based on the VA's maximum guarantee of $104,250 and his partial eligibility, how much of a loan can Sam get with no money down?

a) $68,250

b) $155,000

c) $208,500

d) $273,000

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Answers (1)

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Ruby Kim · Answer 1

D) $273,000

Explanation:

The VA's maximum guarantee for home purchases applicable for 2019 is $484,350, including additional benefits like no down payments and no private mortgage insurance.

Since Sam already used 34.45% of his benefit during 2000, he can only use 65.55% of his available benefit now. In current values that would equal around $317,000 but I guess this question is using values applicable during 2018, which would result in a maximum guarantee of $417,000, and 65.55% of that would be $273,000.

The amount of VA's loans increase year by year and also vary depending on certain states and counties.