Every service, credit, income, occupancy, and property rule — sourced from VA.gov and the VA Lenders Handbook M26-7, the VA's official policy manual.
No-obligation VA pre-qualification review.
VA loan eligibility comes down to service history and a Certificate of Eligibility: 90 days active duty in wartime, 181 days in peacetime, or 6 years in the Guard/Reserve, plus an other-than-dishonorable discharge. The VA sets no minimum credit score and no maximum DTI — lenders and VA residual income guidelines decide the rest.
If you meet the service requirement and clear residual income, a VA approval is realistic even without a high credit score.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 31, 2026 against the VA Lenders Handbook (M26-7)
Check my eligibilitySAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.
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AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.
The VA does not set a maximum LTV the way a conventional loan does — $0 down is available to any veteran with full entitlement, regardless of price, since the Blue Water Navy Vietnam Veterans Act of 2019 removed the VA loan limit for full-entitlement borrowers.
| Transaction | Units | Base LTV | Typical lender ceiling |
|---|---|---|---|
Purchase — full entitlement $0 down for a veteran with full entitlement, with no VA-imposed loan limit since the Blue Water Navy Vietnam Veterans Act of 2019 (VA.gov — Loan Limits). The lender still underwrites to its own risk tolerance and the appraised value. | 1–4 units | 100% | 100% |
Purchase — reduced/partial entitlement Applies only when a prior VA loan is still outstanding or was not restored after default. The veteran's down payment plus the VA guaranty must equal 25% of the loan amount; limits track the FHFA conforming loan limit ($832,750 baseline for 2026) (FHFA Conforming Loan Limits). | 1–4 units | Varies with remaining entitlement | Up to FHFA conforming limit |
IRRRL (Interest Rate Reduction Refinance Loan) Because the existing loan is already VA-guaranteed, the IRRRL is not appraisal-driven. Lenders typically allow up to 105% LTV/CLTV measured on the total loan amount including the financed 0.50% funding fee, with no DTI calculated. It is tested instead by 210-day/6-payment seasoning, net tangible benefit, and the 36-month recoupment rule (VA.gov — Home Loans). | 1–4 units | No VA maximum LTV | 105% typical lender cap |
Cash-out refinance — Type I (loan amount ≤ payoff) The VA allows cash-out financing up to 100% of appraised value. Most lenders overlay a 90% cap at a 580 score, while investors that follow VA Circular 26-19-05 without overlays will go 90.01%–100% with a 620 score (660 above the conforming limit). LTV on a cash-out includes the financed funding fee (VA Lenders Handbook M26-7). | 1–4 units | 100% (VA maximum) | 90% standard; 100% at high-LTV investors |
Cash-out refinance — Type II (loan amount > payoff) Same VA ceiling and lender overlays as Type I; Type II adds new money beyond the existing lien, including a non-VA loan being refinanced into a VA loan. A home owned free and clear is not eligible, and Texas 50(a)(6) cash-out is not allowed. | 1–4 units | 100% (VA maximum) | 90% standard; 100% at high-LTV investors |
Purchase with a temporary buydown (1-0 or 2-1) Still $0 down on a 30-year fixed. The buydown must be funded by the seller and counts inside the 4% concession limit, and the file is qualified at the full note rate rather than the bought-down rate. Not offered by every VA lender. | 1–4 units | 100% | 100% |
Native American Direct Loan (NADL) $0 down, VA is the direct lender, and no monthly mortgage insurance. Requires a Memorandum of Understanding between the VA and the tribal government (VA.gov — Home Loans). | 1 unit on federal trust land | 100% | 100% |
Renovation (Alteration & Repair) Still $0 down; the appraiser values the property subject to completed repairs, and funds are escrowed and released as work is inspected (VA Lenders Handbook M26-7, Ch. 12). | 1–4 units | 100% of purchase price plus eligible repair costs | 100% |
Terms available: 10, 15, 20, 25, and 30-year fixed terms are all available. Adjustable-rate options exist at some lenders, but the VA IRRRL can convert any VA ARM to a fixed rate even when the rate itself does not drop.
The VA sets the floor. Individual lenders add their own requirements — called overlays — on top of it. This is the single biggest reason veterans get declined after being told they 'meet VA guidelines.' Here is where the two diverge.
The VA sets no minimum credit score at all.
580 is the real floor on a VA purchase or IRRRL at the flexible investors, 600 on a manufactured home, and 620 on any manually underwritten file (660 on a manual cash-out). Loan amounts above $1,000,000 require 660, and cash-out above 90% LTV that also exceeds the conforming limit requires 660.
No VA loan limit applies to a veteran with full entitlement since the Blue Water Navy Vietnam Veterans Act of 2019 (VA.gov — Loan Limits).
Investors still cap what they will fund. $2,000,000 is the hard ceiling at most VA wholesale desks, with a 660 score required above $1,000,000.
Residual income is the VA's signature underwriting test: the monthly income left over after the mortgage payment, taxes, insurance, debts, maintenance, and utilities, benchmarked by region, family size, and loan amount above or below $80,000 (VA Lenders Handbook M26-7, Ch. 4).
Lenders apply the VA's own tables and compute them from Line 41 (net effective income) minus Line 21 (monthly shelter expense) of VA Form 26-6393. On manual underwrites the bar rises to 120% of the regional figure.
41% DTI is the VA's guideline benchmark, not a hard cap. Above 41%, the file must show residual income exceeding the regional requirement by at least 20%, or other documented compensating factors.
Automated approvals routinely run well above 41%; the practical ceiling is 65% at Ginnie Mae-pooled investors. Manual underwrites are held to 45% at most desks, stretching to 50% with 120% residual income plus compensating factors, and to 55% only with 120% residual income, no housing lates in 12 months, and 2 months of reserves from verified assets (no gift funds).
Permitted whenever a file cannot be approved through automated underwriting (DU/LP).
Expect 620/660 score floors, 24 months of housing history at 0x30 in 12 and no more than 1x30 in 24, three trade lines with 12 months of history, payment shock inside $100 or 5%, 1 month of reserves on a 1-unit (3 on 2–4 units), and a letter of explanation for every derogatory item and any employment gap over 30 days.
Chapter 7 seasoning is typically 2 years from discharge. Chapter 13 may qualify after 12 months of on-time trustee-approved plan payments. Foreclosure or short sale is typically a 2-year wait (VA Lenders Handbook M26-7).
Some lenders add 6–12 months on top of the VA's minimum, especially for Chapter 13 files still in an active plan, and may require a letter of explanation regardless of how much time has passed.
Lender origination charges are capped at 1% of the loan amount, and the VA publishes a specific list of non-allowable fees the veteran cannot be charged — including attorney fees for the lender, loan-broker fees, and prepayment penalties (VA.gov — Funding Fee and Closing Costs).
Lenders structure their fee schedules to stay under the 1% cap and shift any non-allowable cost to themselves or to the seller through negotiated concessions (up to 4% of reasonable value) rather than to the veteran.
Overlays vary by lender and by file, and change without notice. Nothing here is a quote, rate lock, offer, or commitment to lend. Final eligibility is determined only after a full application and underwriting review.
Score floors, LTV ceilings and DTI caps by transaction type, taken from current VA program guides in our wholesale network. These are lender overlays, not VA rules.
| Program | Occupancy / units | Min FICO | Max LTV / CLTV | Max DTI |
|---|---|---|---|---|
VA Purchase Full documentation — $0 down at 100% LTV. LTV is measured on the base loan amount, so the financed funding fee may push the total loan above 100%. | Primary residence1–4 units | 580 | 100% / 100% | Per AUS (up to 65% at some investors) |
VA Purchase — manufactured home Full documentation — Multi-wide only, permanent foundation, built on or after 6/1/1976, minimum 600 sq ft and 12 ft wide. AUS Approve/Eligible required — no manual underwrite, no repair escrows, no leasehold. | Primary residence1 unit | 600 | 100% / 100% | Per AUS |
VA IRRRL (streamline refinance) Streamline — LTV is measured on the total loan amount including the financed 0.50% funding fee. No appraisal, no source of funds, no DTI. Manual underwrite by definition. | Primary, or prior primary (VA Form 26-1820)1–4 units | 580 | 105% / 105% | Not calculated |
VA Cash-Out — standard Full documentation — The common lender cap. LTV includes the financed funding fee on cash-out — it cannot be exceeded by the fee the way a purchase can. | Primary residence1–4 units | 580 | 90% / 90% | Per AUS |
VA Cash-Out — high LTV Full documentation — 90.01%–100% LTV is available at investors that follow VA Circular 26-19-05 without overlays. A home owned free and clear is not eligible. Texas 50(a)(6) is not allowed. | Owner-occupied only1–4 units | 620 (660 above conforming limits) | 100% / 100% | Per AUS |
VA Jumbo / High Balance Full documentation — Any loan above the county conforming loan limit. 15- and 30-year fixed only on high balance; 3/1 and 5/1 ARMs available. Ceiling is $3,000,000 at the most permissive investor, $2,000,000 at most. | Owner-occupied only1–4 units | 660 typical (500 at no-overlay investors) | 100% purchase / 90% cash-out | Per AUS |
VA IRRRL Jumbo / High Balance Streamline — Conforming loan limits do not apply to an IRRRL — the maximum loan is the existing balance plus allowable fees, up to two discount points, and the 0.50% funding fee. High balance IRRRLs allow at most 1x30 mortgage late in 12 months (pricing adjustment applies). | Primary, prior primary, or investment property1–4 units | None non-credit-qualifying (500 credit-qualifying) | No VA maximum LTV | 41% when credit-qualifying |
VA Temporary Buydown (1-0 and 2-1) Full documentation — 30-year fixed only. Buydown funds must be paid by the seller and count inside the 4% concession limit. The file is qualified at the full note rate, never the bought-down rate. Not every lender offers temporary buydowns. | Owner-occupied only1–4 units | 580 | 100% / 100% | Per AUS |
Compiled from current VA program guides in our wholesale lender network and from VA Lenders Handbook M26-7, VA Circular 26-19-05 and 26-19-23, and 38 CFR 36.4300. These are lender overlays, not VA rules — the VA sets no minimum credit score and no maximum DTI. Terms vary by lender, investor and file and are subject to change without notice. Not a quote, rate lock, offer, or commitment to lend.
When automated underwriting returns a Refer, a human underwrites the file against VA Lenders Handbook M26-7 Chapter 4. The bar is specific, and it is where most borderline VA files are either saved or lost.
620 minimum on purchases, 660 on cash-out refinances.
45% at most manual-underwrite desks. Some investors stretch to 55%: above 41% and up to 50% requires residual income at 120% of the regional table plus documented compensating factors; 50%–55% additionally requires no housing lates in 12 months and at least 2 months of reserves from verified assets (gift funds cannot be used).
120% of the VA regional residual income requirement, calculated from Line 41 (net effective income) and Line 21 (monthly shelter expense) of VA Form 26-6393.
24 months of rent or mortgage history — 0x30 in the last 12 months and no more than 1x30 in the last 24.
Three trade lines with 12 months of history. No non-traditional credit. A letter of explanation for any derogatory item and for any employment gap over 30 days.
New housing payment should be within $100 or 5% of the current housing payment.
1 month of reserves on a 1-unit property, 3 months on 2–4 units.
For unpaid collections or accounts with derogatory payments, credit is generally considered re-established after 12 months of satisfactory payments following the date the last derogatory item was satisfied. Unpaid collections are treated as open, recent credit.
A VA loan crosses into the jumbo tier the moment it exceeds the county conforming loan limit. That is an investor pricing and underwriting tier — not a VA cap. A veteran with full entitlement can still buy above these amounts with $0 down.
| Area | Units | Jumbo starts at (2026) | 2025 |
|---|---|---|---|
| 48 contiguous states, DC, Puerto Rico | 1 unit | $832,751 | $806,501 |
| 48 contiguous states, DC, Puerto Rico | 2 units | $1,066,251 | $1,032,651 |
| 48 contiguous states, DC, Puerto Rico | 3 units | $1,288,801 | $1,248,151 |
| 48 contiguous states, DC, Puerto Rico | 4 units | $1,601,751 | $1,551,251 |
| Alaska and Hawaii | 1 unit | $1,249,126 | $1,209,751 |
| Alaska and Hawaii | 2 units | $1,599,376 | $1,548,976 |
Start a VA pre-qualification with a licensed loan originator. Licensed in Colorado and Florida.
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A VA loan can finance up to a 4-unit property with $0 down, as long as you live in one unit. Rent from the other units can even help you qualify.
Program rules and figures on this page are taken from the primary government sources below, not from third-party summaries.
Verified against VA Lenders Handbook M26-7, Change 6 — August 12, 2026. Simply Approved Mortgages is not affiliated with or endorsed by HUD, VA, or any government agency.
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