Veterans Affairs (VA) Mortgages
Reach more Veterans in high-cost housing markets, and provide these Department of Veterans Affairs (VA)-eligible borrowers with more homeownership opportunities with VA Mortgages.
For example, VA-eligible borrowers can 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.
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 $424,100 for the U.S. mainland, and $636,150 in Alaska, Guam, Hawaii and the U.S. Virgin Islands. Plus, with Loan Product Advisor's streamlined processing, you can approve Accept loans without VA automatic underwriter approval.
A VA Mortgage allows you to provide homeownership opportunities to a new borrower segment and increase your origination volume and sell VA mortgages to Freddie Mac through Loan Selling Advisor® using our Fixed-rate Cash, Fixed-rate Guarantor, or MultiLender Swap executions.
Who are VA Mortgages for?
- Veterans in high-cost areas, such as California, New York and New Jersey.
- Veterans looking to obtain maximum financing without mortgage insurance.
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
Product Features
- Property Type/Eligible Properties
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
- 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 Product Advisor or manually underwritten. Mortgage insurance is not required. VA underwriting guidelines apply. See the Loan Product Advisor VA Documentation Matrix for Information to assist in determining the minimum documentation requirements for VA loans.
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, and multiLender Swap
- Credit Fees
Credit Fees in Price may apply based on the individual characteristics of the mortgage. See Guide Exhibit 19 for details on applicable fees.
- Delivery Requirements
See Guide Chapter 6302.12 for special delivery instructions for all VA Mortgages.
Growing Your Business
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Resources for Borrowers
Reaching and educating borrowers – and helping them find the right mortgage – is essential for your business. Freddie Mac provides an array of materials you can share with your clients and business prospects.