The value that the Veterans Administration places upon a property, which is defined by the Certificate of Reasonable Value, is directly tied to the maximum value of a loan the VA is willing to guarantee for the purchase of that property.
-Example
Verne Veteran has picked out a home he would like to purchase and is planning on using a VA guaranteed home loan to do so. Before he can take out the loan, the Veterans Administration examines an appraisal of the home’s value, determining it to be $540,000. Therefore, the maximum value of a VA loan on that property would be $540,000.
