Illinois exam glossary
VA loan
A Certificate of Eligibility answers a benefits question. It does not approve the borrower, the property or the loan amount. VA exam questions become easier when you keep eligibility, entitlement, lender underwriting and property requirements separate. Then check the funding fee and the actual transaction.
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The short answer
A typical VA-backed purchase loan comes from a private lender, with part of the risk guaranteed by the Department of Veterans Affairs. An eligible borrower still needs lender approval, qualifying occupancy and an acceptable property. Full entitlement removes the VA county loan-limit cap; it does not create unlimited borrowing. Many loans require no down payment and no monthly mortgage insurance, but exemptions and transaction facts matter. A nonexempt borrower may finance the one-time funding fee, so the total balance can exceed the base purchase amount.
Reviewed October 25, 2026. PSI national IV.A.4.b names VA-guaranteed loans within Financing. The whole Financing domain has 10 of 100 scored national broker questions, with no page-specific quota. This lesson uses the identified current VA pages and handbook passages, including the post-May 2026 MPR version and credit guidance updated in August 2026. It covers ordinary purchase concepts and selected assumption distinctions, not a complete benefits, underwriting or specialized-loan manual.
Check the benefit, the loan and the property
- Start with the actual benefit status. Use the COE and any conditions rather than assume that military service, a prior VA loan or a displayed basic entitlement amount answers every eligibility question.
- Separate full from remaining entitlement. Full entitlement has no VA county loan-limit cap. With remaining entitlement, use the current county one-unit FHFA limit and the entitlement already charged. That is guaranty support, not cash paid to the borrower.
- Underwrite the borrower separately. Credit, verifiable income, debts, assets, residual income and lender standards still matter. VA's lack of a universal minimum credit score does not mean that every lender must accept every score or that credit history is irrelevant.
- Check occupancy and the property. The ordinary purchase is for a qualifying home, not simply a vacation or investment purchase. Reconcile price, reasonable value, MPR conditions and the independent inspection. An appraisal is not a comprehensive inspection or a condition warranty.
- Price the right loan. Check funding-fee exemption first, then loan type, first or later use and the applicable down-payment tier. Multiply the rate by the base loan before adding a financed funding fee. Do not apply purchase tiers to every refinance or assumption.
- Keep value limits and financed fees distinct. The ordinary purchase amount is constrained by the applicable price and reasonable-value rules. An eligible financed funding fee may be added. Do not disguise a price-value gap as a funding fee or assume that every closing cost can be financed into a purchase loan.
- For a transfer, distinguish a properly approved assumption from merely taking over payments. The approved assumption includes a release-of-liability process. Substitution of entitlement is an additional, different issue; a non-Veteran assumer cannot substitute VA entitlement for the seller.
| Use status | Down payment | Funding fee |
|---|---|---|
| First use | Less than 5% | 2.15% |
| First use | 5% to less than 10% | 1.50% |
| First use | 10% or more | 1.25% |
| Subsequent use | Less than 5% | 3.30% |
| Subsequent use | 5% to less than 10% | 1.50% |
| Subsequent use | 10% or more | 1.25% |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| VA-backed loan vs. VA direct loan | A private lender funds a VA-backed loan and VA guarantees part. In a VA direct program such as an eligible NADL, VA acts as lender. | Private credit with guaranty versus VA as creditor. |
| VA guaranty vs. FHA insurance | VA guarantees a qualifying portion under its benefit program. FHA insures approved lenders under HUD's separate mortgage-insurance program. | Veteran guaranty versus federal mortgage insurance. |
| COE vs. preapproval | A COE documents benefit eligibility and entitlement. Preapproval is a lender's conditional credit and capacity assessment. | Benefit proof versus credit decision. |
| Entitlement vs. loan amount | Entitlement is guaranty available to support the lender. Loan amount is the principal the borrower promises to repay. | Guaranty support versus debt proceeds. |
| Full entitlement vs. remaining entitlement | Full entitlement removes the VA county loan-limit cap. Remaining entitlement uses the applicable county one-unit limit and entitlement already charged. Both still require underwriting and the applicable property and loan-size analysis. | Unrestricted guaranty tier versus reduced benefit calculation. |
| Funding fee vs. mortgage insurance | The funding fee is generally a one-time program charge for a nonexempt borrower. VA does not require monthly mortgage insurance. The fee, homeowners insurance, property taxes and any other actual charges are different costs. | One-time program fee versus recurring premium. |
| Residual income vs. DTI | Residual income measures dollars left for family support after specified obligations. DTI measures monthly debt payments as a percentage of gross income. | Dollar remainder versus percentage ratio. |
| Reasonable value vs. purchase price | Contract price and VA reasonable value are different amounts. Apply the ordinary purchase base-amount limit and then the permitted financed funding-fee treatment. A price above value is not automatically covered by the guaranty. | Collateral support versus negotiated consideration. |
| VA appraisal vs. home inspection | The appraisal supports reasonable value and MPR review. The inspection is a separate buyer-focused condition examination. | Guaranty collateral review versus buyer due diligence. |
| Closing-cost credit vs. seller concession | VA excludes normal closing costs and normal discount points from its four-percent concessions calculation. Defined extra benefits count toward that cap. | Ordinary cost payment versus capped inducement. |
| Assumption vs. release of liability | A properly approved VA assumption is processed as a release of liability; it is different from an informal transfer or someone simply making payments. Confirm the approved documents. Restoring the seller's entitlement remains a separate issue. | New payer versus old borrower released. |
| Release of liability vs. restoration of entitlement | The approved assumption/release concerns the seller's mortgage liability. Substitution uses an eligible assumer's sufficient entitlement to release the seller's charged benefit. A non-Veteran can qualify to assume without supplying that substitution. | End personal exposure versus recover benefit capacity. |
Work through the facts
COE is not loan approval
A Veteran receives a COE showing full entitlement and assumes the lender must approve any requested amount.
- The COE proves home-loan benefit eligibility and entitlement status.
- The lender still evaluates income, debts, credit, assets, occupancy, and its own requirements.
- The property must support the price and loan through reasonable value and eligibility.
Answer: Full entitlement does not guarantee credit approval or unlimited loan size.
First-use funding fee
A nonexempt first-use borrower obtains a $400,000 base VA purchase loan before the funding fee, with no down payment.
- Less than 5% down places the transaction in the 2.15% first-use tier.
- $400,000 times 2.15% equals $8,600.
- The borrower may generally pay the fee in cash or finance it under current rules.
Answer: The funding fee is $8,600. If permitted and financed, it produces a $408,600 total balance; it is not calculated again on that enlarged balance.
Five-percent down changes the fee
The purchase price is $400,000. A nonexempt first-use borrower pays $20,000 down, exactly 5% of the price, leaving a $380,000 base loan before the funding fee.
- Exactly 5% enters the 1.5% tier.
- The funding fee applies to the $380,000 base loan, not the $400,000 price or the final balance after financing the fee.
- $380,000 times 1.5% equals $5,700.
Answer: The funding fee is $5,700.
Price exceeds reasonable value
A property is under contract for $425,000, but the VA Notice of Value supports $410,000. The borrower wants zero down.
- The guaranty cannot be treated as support for value the appraisal process did not establish.
- Possible paths include price reduction, borrower cash for the gap, a successful reconsideration, or a contract remedy.
- Lender and entitlement requirements still apply.
Answer: The $15,000 price-value gap must be resolved; zero down is not automatic.
DTI above 41% is not automatic denial
A VA file has 43% DTI, strong credit, and residual income exceeding its guideline by more than 20%.
- VA treats DTI as a guide secondary to residual income rather than a universal cliff.
- Residual income exceeding the guideline by at least 20% affects the handbook's scrutiny and supervisor-statement provisions; it is not an independent approval guarantee.
- The underwriter must still justify approval and apply all current requirements.
Answer: The file may be approvable; 41% is not an automatic rejection line.
Concession cap calculation
Reasonable value is $350,000. Defined seller concessions total $15,000, excluding normal closing costs and normal discount points.
- Four percent of $350,000 equals $14,000.
- The counted concessions exceed that amount by $1,000.
- Normal costs excluded by VA should not be added back into the concession total.
Answer: Counted concessions are $1,000 above the VA four-percent limit.
Assumption does not restore entitlement automatically
A qualified non-Veteran is approved to assume a seller's VA-backed loan, and the seller assumes entitlement is immediately restored.
- A properly approved assumption includes the release-of-liability process; verify the actual approval documents.
- The qualified non-Veteran cannot substitute VA entitlement.
- Without a qualifying substitution, the seller's entitlement remains tied to the loan; the seller may still have other remaining entitlement.
Answer: Approved assumption alone does not automatically restore the seller's entitlement.
A financed fee above the appraised amount
Assume a standard qualifying purchase with $400,000 price and reasonable value, a $400,000 base loan and an eligible $8,600 financed funding fee. No other additions apply.
- The base purchase amount matches the stated price and value.
- The eligible financed funding fee is added separately.
- The $408,600 total is not automatically prohibited merely because it exceeds $400,000.
Answer: The financed-fee treatment can explain the higher total balance, subject to all loan requirements. It does not authorize an unrelated price gap or arbitrary closing costs.
Remaining entitlement with a hypothetical county limit
For arithmetic practice only, assume the applicable current county one-unit limit is $1,000,000 and $100,000 of entitlement is already charged. No restoration or other adjustment applies.
- Twenty-five percent of $1,000,000 is $250,000.
- Subtract the $100,000 charge to get $150,000 remaining support.
- Four times $150,000 is $600,000 as the simplified no-down-payment support figure.
- The $1,000,000 is a given hypothetical, not a quoted 2026 Illinois county limit or a credit approval.
Answer: The simplified support calculation gives $600,000; the actual lender must still evaluate entitlement, value and underwriting.
A zero basic-entitlement entry
A COE shows zero remaining basic entitlement. The applicant assumes the VA benefit can never support another loan.
- Basic and bonus entitlement are distinct.
- VA explains that a person with zero basic entitlement may have bonus entitlement for a loan above $144,000.
- The actual prior charges, COE conditions and remaining entitlement must be evaluated.
Answer: Do not decide eligibility or purchasing capacity from the zero basic-entry alone.
Exemption before multiplication
A purchase borrower's qualifying funding-fee exemption is established for closing. A worksheet nevertheless charges 2.15% solely because this is the first use.
- First establish whether the funding fee is owed.
- The nonexempt purchase tier does not override a confirmed exemption.
- Other interest and closing expenses remain separate.
Answer: Do not impose the funding fee on these stated exempt facts. An exemption is not a promise of a cost-free loan.
Normal closing costs are not all capped concessions
A loan file has seller payments for ordinary buyer closing costs and a separately identified group of VA-defined concessions. A student puts every seller-paid dollar under one 4% cap.
- Chapter 8 Topic 5 distinguishes counted concessions from normal buyer closing costs and market-appropriate points.
- Its four-percent comparison uses the established reasonable value.
- Classify the actual item before applying that calculation; other requirements still apply.
Answer: The single-bucket calculation is incorrect. The 4% rule is not a universal cap on every seller payment.
Mistakes to avoid
- Saying VA directly funds every VA loan A private lender funds the typical VA-backed loan; VA guarantees a qualifying portion.
- Calling the COE a loan approval It proves benefit eligibility and entitlement, not credit, capacity, or property approval.
- Calling entitlement the amount borrowed Entitlement is guaranty support, not loan proceeds.
- Saying full entitlement means unlimited borrowing Lender underwriting and property value still constrain the loan.
- Saying every VA loan is zero down Entitlement, reasonable value, price, lender rules, and borrower choice can create a down payment.
- Using a county limit for full entitlement Full entitlement has no VA county loan-limit cap. The lender and applicable base-amount/value rules still matter, and an eligible financed funding fee is treated separately.
- Saying VA requires a universal minimum credit score VA states it does not, but participating lenders can impose minimum scores.
- Treating 41% DTI as automatic denial VA uses it as a guide with residual income and the complete credit analysis.
- Ignoring residual income Residual income is a central dollar-based capacity measure in VA underwriting.
- Calling the funding fee monthly insurance It is generally a one-time program fee, with no VA-required monthly PMI or MIP.
- Using one funding fee for every borrower Check exemption, loan type, first or later use, and down-payment tier.
- Calling a VA appraisal a home inspection Use the current post-May 2026 Chapter 12 reference for the identified MPR principles; an old PDF link is not proof of the latest chapter.
- Using outdated pre-May 2026 MPR details Use revised VA Pamphlet 26-7 Chapter 12 effective May 1, 2026.
- Putting normal closing costs inside the four-percent concession cap VA excludes normal discount points and normal buyer closing costs from that concession calculation.
- Assuming an assumption releases liability and restores entitlement A properly approved assumption includes a release-of-liability process. Confirm the documents and separately analyze substitution or restoration of entitlement; an informal payment takeover proves neither.
- Every total VA purchase balance must be no greater than appraised value, without exception. Apply the ordinary base-amount rule and the separate eligible financed funding fee; specialized additions have their own rules.
- A pending disability claim guarantees a fee exemption or refund. The qualifying status, award or rating, effective dates and closing documentation matter.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. Who ordinarily funds a VA-backed purchase loan?
- The Federal Housing Administration
- The Department of Defense as the mortgage lender
- VA directly in every VA-backed purchase
- A private lender
Show answer and explanation
Answer: D. A private lender
VA guarantees part of the approved loan rather than ordinarily advancing the purchase funds.
2. What does a COE establish?
- Appraised value
- VA home loan benefit eligibility and entitlement information
- Final lender approval
- Home inspection results
Show answer and explanation
Answer: B. VA home loan benefit eligibility and entitlement information
Credit, capacity, occupancy, and property approval remain separate.
3. Does a borrower with full entitlement have a VA county loan limit?
- Yes, every full-entitlement borrower is capped at the FHA floor
- No, but underwriting and the applicable base-amount/value rules still matter
- No, so the lender must approve any requested amount
- Yes, the amount shown as basic entitlement is the loan cap
Show answer and explanation
Answer: B. No, but underwriting and the applicable base-amount/value rules still matter
Full entitlement removes the VA county cap, not underwriting or collateral requirements. Apply any eligible financed funding fee separately from the ordinary base purchase amount.
4. What is the current nonexempt first-use purchase funding fee with less than 5% down?
- 0.5%
- 1.25%
- 2.15%
- 3.3%
Show answer and explanation
Answer: C. 2.15%
The current VA table has applied this first-use tier since April 7, 2023.
5. What is the current subsequent-use purchase fee with less than 5% down?
- 1.5%
- 1.25%
- 2.15%
- 3.3%
Show answer and explanation
Answer: D. 3.3%
A funding-fee exemption can remove the charge, but the nonexempt tier is 3.3%.
6. Which correctly distinguishes VA mortgage-insurance costs?
- Every VA loan requires monthly conventional PMI
- VA always charges FHA annual MIP
- VA requires no monthly mortgage insurance, but a funding fee and other costs may apply
- A funding-fee exemption cancels all interest and closing costs
Show answer and explanation
Answer: C. VA requires no monthly mortgage insurance, but a funding fee and other costs may apply
Many nonexempt borrowers pay a one-time funding fee instead.
7. What is residual income?
- The amount left after applying the seller-concession cap
- Unused guaranty shown or calculated from entitlement
- Monthly debt divided by gross income
- Income remaining for family support after specified obligations
Show answer and explanation
Answer: D. Income remaining for family support after specified obligations
It is a dollar measure distinct from the DTI percentage.
8. Is 41% DTI an absolute VA rejection point?
- Only if the appraisal is high
- DTI never matters
- No, it is a guide analyzed with residual income and other credit factors
- Yes, without exception
Show answer and explanation
Answer: C. No, it is a guide analyzed with residual income and other credit factors
Higher ratios require proper scrutiny, support, and documentation under current underwriting rules.
9. Which statement correctly distinguishes the VA appraisal from a home inspection?
- The appraisal supports value and MPR review; it is not a comprehensive inspection
- A VA appraisal eliminates every need for buyer inspection
- The appraisal guarantees that every appliance has been operated
- MPR review is a warranty against hidden defects
Show answer and explanation
Answer: A. The appraisal supports value and MPR review; it is not a comprehensive inspection
VA tells buyers that appraisal and inspection serve different functions.
10. A qualified non-Veteran completes a properly approved VA assumption with the release-of-liability process. What remains a separate issue?
- Automatic conversion of the loan into FHA financing
- The seller's charged entitlement, which is not restored by a non-Veteran substitution
- A requirement that every assumer be a Veteran
- Automatic restoration of all entitlement merely because payments transfer
Show answer and explanation
Answer: B. The seller's charged entitlement, which is not restored by a non-Veteran substitution
An approved assumption includes the release process, but a non-Veteran cannot substitute VA entitlement. Confirm the documents and the seller's remaining or restoration status separately.
11. A qualifying ordinary purchase has a $400,000 base loan and an eligible $8,600 financed funding fee. No other additions apply. Which is correct?
- The total is $408,600; eligible fee financing is separate from the base amount
- Every other closing cost may now be added without limit
- The fee automatically finances a separate $15,000 appraisal gap
- The fee must be recalculated on $408,600
Show answer and explanation
Answer: A. The total is $408,600; eligible fee financing is separate from the base amount
Add the eligible fee once to the base. This treatment is not permission to finance an unsupported price gap or every purchase cost.
12. For practice only, assume a $1,000,000 applicable county one-unit limit and $100,000 already-charged entitlement. Using 25% support and multiplying the remainder by four, what simplified no-down-payment support figure results?
- $150,000
- $600,000
- $900,000
- $1,000,000
Show answer and explanation
Answer: B. $600,000
25% of $1,000,000 is $250,000; less $100,000 leaves $150,000. Four times that is $600,000. This hypothetical is not an actual Illinois county limit or an approval.
Common questions
What is a VA loan?
A VA-backed home loan is made by a private lender and guaranteed in part by the U.S. Department of Veterans Affairs for an eligible Veteran, service member, or qualifying surviving spouse. The guaranty protects the lender against qualifying loss. It does not make the loan free, erase the borrower's note, or guarantee lender approval.
What is a Certificate of Eligibility?
A Certificate of Eligibility, or COE, establishes that the applicant meets the service or survivor requirements for the VA home loan benefit and shows entitlement information. It is not a credit approval. The lender must still underwrite income, debts, credit, assets, occupancy, property value, and every applicable VA and lender requirement.
Does a VA purchase loan require a down payment?
Often no when the eligible borrower has sufficient entitlement, the lender approves the loan, and the purchase price does not exceed the VA reasonable value. A down payment can be required or chosen when price exceeds value, remaining entitlement is insufficient, lender or transaction conditions require it, or the borrower wants a lower funding fee or smaller balance.
Is there a VA loan limit for a borrower with full entitlement?
A borrower with full entitlement has no VA county loan-limit cap, but the lender still determines what can be approved. Credit, income, debts, assets and the property remain relevant. Apply the ordinary purchase base-amount rules separately from an eligible financed funding fee. County one-unit conforming limits matter when calculating remaining entitlement; they are not a universal full-entitlement VA loan cap.
What is VA entitlement?
Entitlement is the amount of guaranty available for use, not the amount the Veteran can borrow or receive in cash. The COE shows basic entitlement and prior charges. Full entitlement can support the applicable guaranty without a VA county cap, while remaining entitlement calculations use the current county conforming limit and entitlement already charged.
What is the VA funding fee in 2026?
The current purchase/construction table, effective April 7, 2023, uses 2.15% for nonexempt first use with less than 5% down and 3.3% for later use with less than 5% down. At least 5% but less than 10% down uses 1.5%, and at least 10% uses 1.25%, for either use category. Check exemption first. Different loan types have separate rates, and the manufactured-home-only prior-use exception can matter.
Who is exempt from the VA funding fee?
The listed categories include receiving qualifying VA service-connected disability compensation; eligibility for that compensation while receiving retirement or active-duty pay instead; a surviving spouse receiving DIC; a service member with the required proposed or memorandum pre-discharge rating before closing; and an active-duty Purple Heart recipient who supplies the required evidence on or before closing. Establish the actual exemption and documentation. Merely filing a disability claim is not the same as obtaining the required status.
Does a VA loan require monthly mortgage insurance?
VA does not require monthly mortgage insurance. Many nonexempt borrowers pay the one-time funding fee instead, in cash or through eligible financing. That does not eliminate interest, homeowners insurance, taxes, any required flood insurance or other actual loan expenses.
Does a VA appraisal replace a home inspection?
No. A VA-approved appraiser develops reasonable value and reviews the property under current VA Minimum Property Requirements. VA expressly distinguishes that appraisal from a home inspection. A buyer should consider a separate inspection and appropriate contract contingencies because the appraisal is not a warranty or comprehensive defect report.
Can a buyer assume a VA loan?
A qualified purchaser, potentially including a non-Veteran, may assume through the current holder or servicer and the applicable approval process. A properly approved assumption includes a release-of-liability process; simply accepting payments does not establish it. Entitlement substitution is different. It requires a qualifying eligible assumer with enough entitlement and the required agreement and processing. A non-Veteran assumption alone does not restore the seller's charged entitlement.
Are these official PSI questions or VA loan advice?
No. These are original teaching scenarios aligned with the public national Financing outline. They are not an eligibility determination, underwriter decision, appraisal, approved assumption or validated readiness test. Use the identified current VA policies and the actual file for a transaction.
Can financing the VA funding fee make the balance exceed the price or appraisal?
Yes, eligible funding-fee financing is separate from the ordinary purchase base amount. For example, a $400,000 base loan plus an $8,600 financed fee totals $408,600. That exception does not mean a price-value gap or all purchase closing costs may be added without restriction. The maximum-loan rules also contain specialized provisions that this ordinary example does not cover.
Is the funding fee calculated on the purchase price or on itself?
For these ordinary purchase examples, apply the selected rate to the base loan remaining after the down payment, before adding a financed funding fee. VA's own example follows that approach. Do not use the full purchase price after a down payment has reduced the base loan, or calculate the fee again on the final enlarged balance.
Can a later disability decision produce a funding-fee refund?
VA states that a later service-connected compensation award may support a refund when its effective date is retroactive to before loan closing. A proposed or memorandum rating received only after closing does not create a refund on that basis. Check the actual award, dates and VA determination; a future refund is not guaranteed simply because a claim is pending.
Does a zero basic-entitlement entry mean the benefit is exhausted?
Not necessarily. VA distinguishes basic entitlement for the smaller-loan tier from bonus entitlement for loans above $144,000. A COE showing no remaining basic entitlement can still require a bonus-entitlement calculation. Read prior charges and any COE condition, rather than equate a single displayed number with either a cash benefit or a final loan decision.
How do remaining entitlement and county limits work?
Use the current FHFA one-unit county limit, even if the property has more than one unit. The simplified support calculation takes 25% of that limit and subtracts entitlement already charged. VA explains that lenders commonly look for entitlement and any down payment to cover 25% of the loan. Actual borrowing can differ with a down payment, value, lender requirements and the full file; the hypothetical worked example is not an actual county limit.
What are VA occupancy requirements?
The ordinary purchase requires a qualifying intention to use the property as a home. Chapter 3 generally defines reasonable occupancy timing as within 60 days after closing, with specified exceptions and conditions for later dates, spouse or dependent-child occupancy, deployments and other situations. A seasonal vacation home is not the same. IRRRL prior-occupancy certification differs from the ordinary purchase rule.
Is 41% DTI an absolute approval or denial line?
No. Chapter 4 treats the debt-to-income ratio as a guide, secondary to residual income, and requires the applicable scrutiny and documentation. Strong residual income can affect the analysis, but neither a low ratio nor a residual figure alone guarantees approval. Residual income is the dollar amount available for family support after specified obligations, rather than the DTI percentage.
What changed in the 2026 VA property-requirements reference?
Use VA's current post-May 2026 Chapter 12 page, updated August 12, 2026, for the identified property principles. It distinguishes value/MPR appraisal from a home inspection and does not require the appraiser to operate mechanical systems or appliances. Apparent required repairs and independent buyer inspection serve different purposes. Do not treat an older complete handbook PDF as proof that every chapter is the latest version.
Does the 4% seller-concession rule cap every seller-paid cost?
No. Chapter 8 Topic 5 excludes normal buyer closing costs and normal market-appropriate discount points from its counted-concession total. It applies the 4% limit to defined concessions using established reasonable value. The actual item, market context and loan rules matter; calling every payment closing costs does not exclude it, either.
Keep practising
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Official sources and scope
Checked October 25, 2026 against the identified VA pages, current handbook passages and official assumption acknowledgment. The funding-fee chart is the current published purchase/construction table. The review identifies the August 2026 underwriting and MPR references, rather than treating an older complete handbook as current in every chapter. Worked examples are original; the remaining-entitlement county amount is explicitly hypothetical.
- PSI June 24, 2026: national IV.A.4.b VA-guaranteed loans
- VA: direct and privately funded VA-backed loan types
- VA: COE confirms benefit eligibility, not final loan approval
- VA-backed purchase loans: occupancy and no monthly mortgage insurance
- VA: full and remaining entitlement and county one-unit limits
- VA: current funding-fee table, exemptions and financing
- VA Chapter 3: purchase amounts, financed funding fee and occupancy
- VA Chapter 4: current underwriting, DTI and residual-income principles
- VA Chapter 8 Topic 5: counted concessions and the four-percent limit
- VA Chapter 12: current post-May 2026 MPR reference
- VA Form 26-10291: assumption, release and substitution of entitlement
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.