B6-1-03, Eligible VA-Guaranteed Mortgages (02/02/2022)

Fannie Mae may purchase or securitize loans secured by one- to four-unit residential properties that are guaranteed by the VA only under Section 3710 of Title 38 for fixed-payment loans in the United States Code. These VA loans can only be delivered to Fannie Mae on a negotiated basis.

Fannie Mae imposes the following additional policies for VA loans:

• Fannie Mae will purchase or securitize fixed-rate VA-guaranteed loans that are subject to interest rate buydowns as long as the borrower is qualified at the note rate.

• The dollar amount of the VA guaranty must be at least equal to 25% of the original principal amount of the mortgage loan.

• Fannie Mae limits the maximum loan amount for VA loans to the one-unit conforming loan limit based on the county in which the property is located. (The one-unit limit applies regardless of the number of units in the property.)