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Topic 5. Other Refinancing Loans
April 10, 2009
Subsection c has been updated to note that maximum guaranty on these types of refinancing loans is limited to $36,000.
This section has been updated to make minor grammatical edits.
a. What Are They?
Other refinancing loans are:
construction loans,
installment land sale contracts, and
loans assumed by Veterans at interest rates higher than that for the proposed refinance.
b. Maximum Loan
These loans may not exceed the lesser of:
the VA reasonable value plus the VA funding fee, or
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the sum of the outstanding balance of the loan to be refinanced plus allowable closing costs (including the funding fee) and discounts.
The cost of energy efficiency improvements can also be added to the loan.
c. Maximum Guaranty
The maximum guaranty for refinancing loans, noted in subsection a, is $36,000.
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Article ID: 554400000314675 VA Pamphlet VAP26-7 Chapter 07 Loans Requiring Special Underwriting, Guaranty, and Other Considerations