VA Mortgage Calculation Worksheet – Purchase Loan Amounts > $144,000
IX. Government Guidelines 1 of 2 Document #9741
Return to Top 04/17/2019
The amount of cash down payment plus the amount of available VA guaranty must equal at least 25% of the
lesser of the purchase price or appraised value. The down payment must also include the amount by which the
purchase price exceeds the appraised value, if applicable. The cash down payment may not be derived from a
second mortgage on the property. Calculate the maximum base loan amount by completing all applicable
steps below. Steps one and two are always required.
STEP ONE
Lesser of purchase price or appraised value (Note: if either are ≤ $144,000, use
Mortgage Calculation Worksheet – Purchase Loan Amounts ≤ $144,000, Doc. #9740
STEP TWO
VA county loan limit – Refer to VA’s County Loan Limits for High Cost Counties
– If
county is not listed on the High Cost County spreadsheet, county maximum is $484,350.
NOTE: Use single family loan limit for all properties, including 2-4 unit properties.
Total entitlement charged to previous VA loans – printed on Certificate of Eligibility –
Exclude any entitlements charged that will be restored prior-to or at the time the subject
loan closes
= Veteran’s available entitlement
x 4
Maximum base loan amount VA will guaranty before addition of the financed
funding fee
STEP THREE
Required only when STEP ONE exceeds the Maximum Base Loan Amount from STEP TWO.
Down payment/guaranty requirements
Veteran’s available entitlement from Step Two
Minimum required down payment
When down payment is required, proceed to step four to calculate loan amounts.
STEP FOUR
Complete when borrower is required or wishes to make a down payment
$ Amount from Step One
- Minimum required down payment from Step Three
=
Maximum base loan amount before addition of financed funding fee
Note: A lower loan amount is acceptable if the veteran prefers to make a larger down
payment. Under no circumstances may the base loan amount exceed the calculation or
Flagstar’s maximum base loan amount of $1,000,000 for loans with credit scores below
680 or $2,000,000 for loans with credit scores of 680 or higher.
