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Veterans Administration (VA) Program

Veterans Administration (VA) Mortgage Guarantee Program

Brief Description: The VA guarantee program provides lending opportunities to eligible veterans. The loans have no down payment requirements and partner well with most closing cost assistance in the MBOH regular bond and set-aside loan programs.

 Veteran Family

MBOH Guidelines for Veterans Administration Guarantee loan:

Borrower Eligibility Criteria:
Income limits (click here)

First-time homebuyer(s); waived for targeted area and eligible veteran.

Home must be primary residence for the life of the loan.

No asset limitations.

Must be certified eligible by the VA.

Full guarantee only with no prior entitlements used and not restored.

Homebuyer education required for non-conventional borrowers, i.e., those with credit scores below 680 or front end ratio above 31% or back end ratio above 41%.


Property Criteria:
Single family home, townhouse, detitled manufactured home on permanent foundation or condo unit (MBOH will purchase loans on up to 25% of units in a project).

Purchase Price Limit  (click here)

Limit of 15% for business use.

Land limited to 35% of value of property on new construction that has private water or sewer.

Maximum parcel size of 40 acres, with no subdivision of land possible.

Must meet applicable building code and have infrastructure.


American Soldier in front of American Flag

Loan Criteria:

Rates depend upon finance option.

30-year fixed rate loan.

IRS recapture potential.

Buy existing or build new home.

Hazard insurance $1,000 deductible all peril; escrow for tax and insurance.


Underwriting Criteria:
Per VA guidelines.

Need any multi-lot/repair issues on appraisal addressed before closing.


Down payment Sources:
Must be approved for use with VA financing.

MBOH pays a portion of the closing costs.

Mortgage Insurance Information:
Requires VA Certificate of Eligibility.


Lender Reservation and Loan Info:
MBOH regulates fees that can be charged. Consult Board staff with any questions.

Reservations valid 60 days for existing homes/ 180 days for new construction.

0.25% fee charged for extensions, 0.50% for cancellation.

Need any multi-lot/repair issues on appraisal addressed before closing.

A veteran kneeling with an american flag 

Reservation Process:

Input on Lender On Line web based reservation system
Fax Borrow Stat Sheet and Homebuyer Education Certificate

Fax reservation to MBOH including:
Reservation cover sheet and required documentation listed

This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide or Terms and Conditions for Whole Loans (June 2, 2014).

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