Federal Benefits for Veterans and Dependents - CT.gov

Chapter 5 Home Loan Guaranty 45in-force, (4) certain medical conditions, or (5) service-connecteddisability.Gulf War: Veterans of the Gulf War era -- Aug. 2, 1990, to a dateto be determined -- must generally complete 24 months of continuousactive duty service or the full period (at least 90 days) for whichthey were called to active duty, and be discharged under other thandishonorable conditions.Exceptions are allowed if the veteran completed at least 90 days ofactive duty but was discharged earlier than 24 months for (1) hardship,(2) the convenience of the government, (3) reduction-in-force,(4) certain medical conditions, or (5) service-connected disability.Reservists and National Guard members are eligible if they wereactivated after Aug. 1, 1990, served at least 90 days, and receivedan honorable discharge.Active Duty Personnel: Until the Gulf War era is ended, persons onactive duty are eligible after serving 90 continuous days.VA Guaranty Amount Varies with the size of the loan and the locationof the property. Because lenders are able to obtain this guarantyfrom VA, borrowers do not need to make a downpayment, providedthey have enough home loan entitlement.VA will guarantee 25 percent of the principal loan amount, up to themaximum guaranty. The maximum guaranty varies depending uponthe location of the property.For all locations in the United States other than Alaska, Guam,Hawaii, and the U.S. Virgin Islands, the maximum guaranty is thegreater of 25 percent of (a) $417,000 or (b) 125 percent of the areamedian price for a single-family residence, but in no case will theguaranty exceed 175 percent of the Freddie Mac loan limit for asingle family residence in the county in which the property securingthe loan is located. This translates to a maximum loan amount of$1,094,625 for 2009.In Alaska, Guam, Hawaii, and the U.S. Virgin Islands, the maximumguaranty is the greater of 25 percent of (a) $625,500 or (b) 125 percentof the area median price for a single-family residence, but in nocase will the guaranty exceed 175 percent of the Freddie Mac loan