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Department of Veterans Affairs (VA) Mortgage

Reach more Veterans in high cost housing markets

Expand your business and generate more loans by providing VA-eligible borrowers with more homeownership opportunities.

Our VA mortgage offering provides all the existing benefits under the current Department of Veterans Affairs program, and allows an original principal balance (OPB) to $417,000 for the U.S. mainland, and $625,000 in Alaska, Guam, Hawaii and the U.S. Virgin Islands. Plus, with Loan Prospector's streamlined processing, you can approve Accept loans without VA automatic underwriter approval.

Product Features

FeatureDescription
Property Type
  • 1- to 4-unit owner-occupied primary residences, including single-family dwellings, condominiums, and planned unit developments (PUDs)
  • Manufactured homes in accordance with requirements in the Single-Family Seller/Servicer Guide (Guide)
  • Refer to VA underwriting guidelines and the Guide for a complete list of eligible property types
Eligible Mortgage Products
  • 15-, 20-, and 30-year fixed-rate mortgages
Borrower Eligibility
  • Debt-to-income ratio up to 41 percent
  • Certificate of eligibility and proof of military service is required
  • Review VA underwriting guidelines and Guide Chapter 35 for all borrower eligibility requirements
Transaction Type
  • Purchase and refinance transactions
Maximum LTV Ratios
  • No maximum LTV
    • Generally the LTV is 100 percent
    • If the veteran finances the funding fee, discount points or elects to finance energy efficient improvements, the LTV will be greater than 100 percent
Eligibility/Underwriting
  • Loan Prospector or manually underwritten
  • Mortgage insurance is not required
  • VA underwriting guidelines apply
  • Collateral is evaluated by VA fee appraisers. To review specific appraisal criteria, refer to the VA's underwriting manual
  • VA Funding Fee charged to defray the costs of administering the VA home loan program. The fee can be financed and varies based on veteran eligibility and subsequent use of benefits
    • VA Funding Fee: 3 percent maximum
  • The VA program outlines what is considered to be reasonable and customary amounts for all of the "Itemized Fees and Charges." The veteran is responsible for payment of the specified fees and charges plus a 1 percent flat charge by the lender, plus reasonable discount points. Refer to VA underwriting guidelines for more details
Execution Options
  • Fixed-rate Cash
  • Fixed-rate Guarantor
  • MultiLender Swap
Delivery Fees
  • Postsettlement delivery fees may apply based on the individual characteristics of the mortgage. See Guide Exhibit 19 for details on applicable fees.
Special Delivery Requirements
  • See Guide Chapter 17.15 for special delivery instructions for all VA Mortgages.
Single-Family Seller/Servicer Guide
  • Refer to Guide Chapter 35

Download a VA Mortgages fact sheet for more details.

Lender Benefits

A VA Mortgage allows you to:

  • Provide homeownership opportunities to a new borrower segment and increase your origination volume.
  • Sell VA mortgages to Freddie Mac through the selling system using our Fixed-rate Cash, Fixed-rate Guarantor, or MultiLender Swap executions.

Benefits for Borrowers

VA Mortgages help your VA-eligible borrowers:

  • Use VA benefits with loans that have a higher OPB. This is important in high cost areas such as California, New York and New Jersey.
  • Obtain maximum financing without mortgage insurance.

Get more information

The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.

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