For loans larger than $144,000, what is the maximum VA guaranty percentage?

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Multiple Choice

For loans larger than $144,000, what is the maximum VA guaranty percentage?

VA loan protection is provided as a fixed share of the loan to reduce the lender’s risk. For standard purchase loans, that guaranty is 25% of the loan amount, and this percentage doesn’t increase with larger loan sizes. So even when the loan exceeds the old conforming limit of $144,000, the maximum guaranty remains 25% (the dollar amount guaranteed grows with the loan, but the percentage stays the same). Other percentages aren’t the standard for typical VA purchase loans, which is why 25% is the correct maximum.

VA loan protection is provided as a fixed share of the loan to reduce the lender’s risk. For standard purchase loans, that guaranty is 25% of the loan amount, and this percentage doesn’t increase with larger loan sizes. So even when the loan exceeds the old conforming limit of $144,000, the maximum guaranty remains 25% (the dollar amount guaranteed grows with the loan, but the percentage stays the same). Other percentages aren’t the standard for typical VA purchase loans, which is why 25% is the correct maximum.

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