VA home loan calculator must be the application that is commonly used by the veterans before they apply a mortgage. It will let them know about how much money they should pay for the loan as well as the interest rates. There are some things to learn by the veterans before they can use the calculator to know the home loan rates. One of the concepts to understand is the VA entitlement. Many veterans are still confusing about it and also about how to calculate it. In this article, you can learn about the concept and the calculating method.
The VA entitlement is certainly gotten by those who have given services to the nation. The entitlement is certainly well deserved and the hard-earned one. Yet, in practical terms, it is actually not the real meaning of the concept.
The veterans that can get the qualification of VA home loan should have the entitlement. It is one amount of money that basically should be repaid by the veterans to the lender because the veterans default on the home loan. There are some process that should be had by the veterans in the VA home loan application, including the using of VA home loan calculator. The primary or basic entitlement of the home loan is as much as $36,000.
The Entitlement Types
In most cases, veterans initiates to repay the loan up to a quarter of the total amount that becomes the financial guaranty. The amount of the repayment must be $36,000 x 4 = $144,000. Those amount gotten must be the maximum amount of home loan for the veteran borrowers in common.
In such amount of money gotten from the home loan, the veterans can purchase a house in good size in one of the country parts. However, that is not all. In order to keep competitive and also make sure that the veterans in the country can own a home, the VA began to associate the guaranty amounts by compatible the limit of loan for conventional financing. The amount is $424,100.
Keep in mind that VA will cover a quarter sums of the loan in almost all cases. The quarter sums is $106,025. To make the amount meets the mark, the secondary entitlement sums is $106,025 – $36,000 = $70,025. The additional entitlement layer will have a great role for the veteran to buy a home at higher than $144,000.
No Limit to Get the Loan
Besides how to use the VA home loan calculator for entitlement, you also should understand that no maximum amount to get the VA loan. As you can extend the guaranty for the loan, you can get the loan amount as high as the lender want to approve.
In the area that is most expensive in the country, the loan limits could exceed the compatible level of $424,100. The areas are including New York, California, Hawaii, Virginia, and some of other states. In such expensive areas, the amount of $424,100 may be not enough for the VA borrowers to purchase one of the home that are mostly sold in high price.
In such counties with high living costs, the loan limits can range over $636,150. In such condition, the VA has guaranty limitation to either is less;
· 25% of the sums of the loan
· 25% of the VA loan limit for the area.
The limits of the VA loan can be changed in each year.
Multiple VA Loans
The VA borrowers can have the second loan entitlement at the same time provided that they are qualified veterans to apply it. About how to apply the secondary entitlement, you should firstly learn about the requirement and restriction. Whilst about the amount, you can count them in the VA home loan calculator.