Below are the VA-guaranteed loan “products” (eligible loan purposes…
The document provides a concise reference of the U.S. Department of Veterans Affairs (VA) loan "products"—the eligible loan purposes that may be guaranteed—and the high‑level program rules that apply to all VA‑guaranteed mortgages. It enumerates each product (purchase/construct, IRRRL streamline refinance, cash‑out refinance, contract‑for‑deed refinance, repair/alteration, simultaneous purchase‑and‑improve, energy‑efficiency improvements, condominium purchase, and farm residence purchase) and outlines the core constraints common to all loans, such as the absence of a statutory maximum loan amount, down‑payment exceptions, occupancy certification, flexible underwriting standards, funding‑fee requirements, and closing‑cost limits. The guide then delves into product‑specific details: IRRRL rules (no appraisal, financing of costs, cash‑back limits, loan‑amount composition, required VA Form 26‑8923), cash‑out refinance limits (loan amount cannot exceed 100 % of reasonable value, cash‑back distinctions, LTV nuances for Type I refinances), repair/supplemental loan conditions (property must already be secured by a VA loan, work must improve livability, prohibited improvements, use‑of‑proceeds limits), and Energy Efficient Mortgage (EEM) caps ($3,000 standard, up to $6,000 with additional documentation, certification requirements when combined with IRRRL). The overall purpose is to give lenders, loan officers, and VA administrators a quick‑reference checklist of what can be guaranteed and the key program parameters that must be adhered to.
Topics
VA-Guaranteed Loan Products and Eligible Purposes
A catalog of all loan purposes the VA may guarantee, including purchase/construct, IRRRL, cash‑out refinance, contract‑for‑deed refinance, repair/alteration, simultaneous purchase‑and‑improve, energy‑efficiency improvements, condominium units, and farm residences.
Core Program Rules Across All VA Loans
High‑level constraints that apply to every VA‑guaranteed loan: no statutory maximum loan amount, down‑payment exceptions, occupancy certification, flexible underwriting standards (credit, income, residual income, DTI), funding‑fee obligations, closing‑cost limits, and interest‑rate/points guidelines.
IRRRL (VA Streamline Refinance) Specific Rules
Details for the Interest Rate Reduction Refinance Loan: purpose, no appraisal or underwriting, financing of closing costs and up to two discount points, cash‑back restrictions (except limited energy‑efficiency reimbursements up to $6,000), loan‑amount composition formula, and required use of VA Form 26‑8923.
VA Cash‑Out Refinance Parameters
Guidelines for cash‑out refinancing: loan amount may not exceed 100 % of reasonable value (including funding fee), cash‑back capabilities versus IRRRL, and special LTV considerations for Type I refinances when moving from fixed to ARM with more than one discount point.
Repair, Renovation, and Supplemental Loan Guidelines
Eligibility and conditions for loans that fund alteration, repair, or improvement of a VA‑owned residence, including requirement that the property already secures a VA loan, must remain occupied, work must improve basic livability, prohibited improvements (e.g., pools), and limits on using proceeds for non‑fixture items.
Energy Efficient Mortgage (EEM) Limits and Requirements
Rules for financing energy‑efficiency improvements: caps of $3,000 (standard) or $6,000 (with additional documentation), prohibition of EEMs above $6,000, and certification requirements when EEM costs are combined with an IRRRL that raises the PITI by 20 % or more.