VA

Veterans, active-duty service members, qualifying National Guard and Reserve members, and many surviving spouses. To prove eligibility you'll need a Certificate of Eligibility (COE). The supporting document is usually your DD-214 (separation papers), NGB-22 (Guard discharge), or a letter from your commanding officer if you're currently serving. We can request the COE for you in minutes through VA's portal.

VA itself has no minimum credit score — that is a lender decision. Our default is 580 on standard VA up to $1M, and that minimum is waived for files receiving an AUS Approve/Eligible, so in practice we close VA loans for borrowers below 580 regularly. Higher loan amounts step up: 680 above $1M, 700 above $2M, 720 above $2.5M.

This is where VA shines. We have no overlay or DTI cap when the file gets an AUS Approve. VA's underwriting uses residual income — the dollars left in your budget each month after the new house payment, taxes, debts, and household expenses — which is often more forgiving than a hard DTI ratio. Manual underwrites cap DTI at 50%; loans over $1.5M cap at 45%. For most VA buyers, residual income is the key, not DTI.

Residual income is what's left in your monthly budget after the new mortgage payment, taxes and insurance, all monthly debts, and a household-expense allowance. VA publishes minimum residual income tables by region and household size, and active-duty or retired service members get a 5% reduction on the requirement. It's a smarter measure than DTI alone — and it's why a lot of VA files qualify that would never fit conventional DTI rules.

You may be, and this benefit is widely underused. Surviving spouses of veterans who died in service or from a service-connected disability are generally eligible, and there are paths for spouses of veterans rated 100% P&T disabled and certain POW/MIA service members. The COE process is slightly different (VA Form 26-1817 instead of 26-1880) — reach out and we'll walk you through it.

Yes — and this is one of the most powerful tools we use on VA files. Third-party contributions (seller credit on a purchase, builder credit on new construction) can be used not only for closing costs but to pay off personal debts at closing. Paying off debt at the closing table lowers your DTI, fixes a tight residual income margin, and can be the difference between approve and decline. It's a VA-specific lever most lenders don't use aggressively.

Most VA borrowers do — the funding fee is what funds the program. On a purchase it's 2.15% for first-time use (1.5% with 5%+ down, 1.25% with 10%+ down). Subsequent use is 3.30%. IRRRL streamline refis are just 0.5%, and cash-out is 2.15% / 3.30% (first / subsequent). The fee can be financed into the loan. Veterans with a service-connected disability rating are exempt — that's real savings; ask us to check your status.

1–4 unit owner-occupied homes (one unit as your primary residence), PUDs (attached or detached), VA-approved warrantable condos, and manufactured homes (multi-width 620 credit score; single-width 640 + AUS Approve required). Newly built homes are eligible, and for true VA one-time close construction loans see our Construction page — it's our specialty. A home that needs work? Ask about VA renovation.

Yes. A VA renovation loan lets you buy (or refinance) and roll certain home improvements into a single VA loan — useful when the home needs work to be livable or to bring it up to your standards. The eligible scope is narrower than FHA's 203(k) (typically non-structural improvements and basic livability repairs), but it can be a powerful way to use your VA benefit on a home that wouldn't qualify as-is. See our Renovation page for the full picture of renovation options, or reach out and we'll match the right program to your project.

If your current loan is already VA, the IRRRL (Interest Rate Reduction Refinance Loan) is the simplest way to lower your rate. No new appraisal, no income verification, no AUS run. The funding fee is just 0.5%. If we already service your loan, the credit-score minimums don't apply. Use this when rates drop and you want to capture the savings quickly.

Yes — except in Texas, where the state constitution's Home Equity rules (Texas A6) prevent VA cash-out. Outside Texas, VA cash-out lets you tap home equity up to 100% LTV (90% on loans over $1M). It can also be used to refinance a non-VA loan into a VA loan — a big benefit if you weren't on a VA loan when you originally bought.

VA only guarantees the veteran's pro-rata share of a joint loan, so when there is a non-veteran co-borrower (not a spouse), a down payment is required. With full entitlement: 14.286% down on a Veteran/Non-Veteran loan, 10% with two Veterans + one Non-Veteran, 18.182% with a Veteran and two Non-Veterans. These are nuanced — reach out and we will structure it.

If you've never used a VA loan, you have full entitlement and can buy with $0 down at any price (subject to lender max). If you've used VA before, you may have partial entitlement — and your remaining buying power depends on the county loan limit and how much entitlement is in use. Use our VA Entitlement & Max Loan calculator (right on this page) to see your max loan with $0 down and any down payment that would be required above that.