Arizona Veterans that no longer have enough”Basic Entitlement” to finance a home using a VA loan have options. Using something called “Bonus Entitlement” may help them finance a home using a VA mortgage despite having used up their Basic Entitlement. For example, Bonus Entitlement is used when a Veteran has:
Max VA Loan Using Bonus Entitlement
What loan amount can a VA borrower qualify for when using their bonus entitlement? Great Question!
Arizona VA Mortgage lenders require the VA insures 25% of a VA loan. In other words, the VA must guaranty a dollar amount equal to 25% of the veteran’s new home loan amount. VA determines their guaranty based on a County’s maximum Conforming Loan limit.
Clear as mud? Think of it like this – a veteran that used all of their $36,000 Basic Entitlement would still be able to qualify for new VA loan thanks to VA allowing “Bonus Entitlement” to be used. Without the VA allowing Bonus Entitlement veterans who used all of their Basic Entitlement would be stuck.
Minimum VA Loan Using Bonus Entitlement
There is no complex formula here. Veteran’s must borrow at least $144,001 on a VA loan when using bonus entitlement. It is that simple!
By Jeremy House