Polling my all lenders who deal with VA loans

[Evans Wright]

I am asking for help to try and understand the numbers for my client but here is the scenario:

Purchase Price = $528999

Purchase Price x .25 = $132249

Conforming county limit $647200 x .25 = $161800

VA amount already used = $61034

Amount left to use  = $100766

Purchase price x.25 - Amount left to use. = $31483

So at this point one lender is saying that the client will only need to pay 25% of the $31483 as a down payment and another lender is saying they will need to pay all $31483 as a down payment should the client not sell their current home before closing which was purchased using VA loan. So my question is who is right or are they both right but use different underwriting for VA? If anyone could share the formula they use or any experience on this matter then it would much appreciated. Thanks!

[Erik Browning]

@Evans Wright Use this calculator to justify the down payment for your borrowers: https://whatsmypayment.com/va-...

In your scenario, the lender telling you that the full $31,483 is needed as a down payment is correct. This is not any different underwriting, it's just that the first underwriter doesn't know what he's talking about. This is straight from the guidelines regarding split entitlement. 

Split entitlement is when a VA Buyer uses up "part" of their VA entitlement on their initial home purchase. Once they depart from that residence, they can choose to keep that property as a rental (or in this case until the home sells) and "use up the rest" of their entitlement to purchase another home.

If the new home purchase is > the remaining amount of entitlement left, the VA buyer will have to come if with 25% of the difference from the "maximum" to the purchase price.

For your exact scenario, look at this screenshot to help illustrate the concept of split entitlement and down payment on the difference: