Question

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

Answer 1

Answer:

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.