The VA loan is the most powerful mortgage benefit in existence. No down payment. No mortgage insurance. Ever. BFF funds VA loans up to $1.5M on purchase and $2M on cash-out — with manual underwriting available and the VA IRRRL for eligible refinances.
Program at a Glance
No other mortgage program eliminates the down payment and eliminates mortgage insurance simultaneously. FHA requires 3.5% down and charges MIP for the life of the loan. Conventional requires 20% down or pays PMI until 80% LTV. VA has neither — and it can be used again after the previous loan is paid off or sold. BFF funds VA up to $1.5M purchase and $2M cash-out, with manual underwriting available for Refer/Eligible files.
VA purchase and cash-out have different maximum loan amounts and different FICO requirements above $1M. Know which tier applies before pricing.
VA Purchase $1.5M Maximum purchase loan amount at BFF Up to $1,000,000580 FICO · 100% LTV · 0% down $1,000,001 - $1,500,000680 FICO required VA Cash-Out Refinance $2M Maximum cash-out loan amount at BFF Up to $1,000,000580 FICO · 100% LTV $1,000,001 - $2,000,000720 FICO required FICO Note: The 680 and 720 FICO thresholds above $1M are BFF requirements, not VA guidelines. VA does not set a minimum credit score - these thresholds reflect BFF's credit risk parameters at high loan amounts. For loans at or below $1M, the standard 580 floor applies.
The Interest Rate Reduction Refinance Loan streamlines the VA refi process down to its essentials. If your borrower has a VA loan and the rate environment has moved in their favor, the IRRRL is almost always the right call.
| Max LTV | 100% (no down payment required with full entitlement, up to $1M) |
| Funding Fee | First use: 2.15% (regular military) / 2.40% (Reserves/Guard) · Subsequent use: 3.30% · May be financed into the loan · Waived if veteran has service-connected disability rating |
| Down Payment | Not required up to $1M with full entitlement · May be required above conforming limit if entitlement is reduced |
| PMI / MIP | Never required - at any LTV |
| Seller Concessions | Up to 4% of purchase price (VA limit) |
| Occupancy | Primary residence only |
| Property Types | SFR · 2-4 unit (borrower must occupy one unit) · VA-approved condos · Manufactured homes (with restrictions) |
| AUS | DU Approve/Eligible OR AUS Refer/Eligible with manual underwriting |
| Temporary Buydowns | Not permitted (BFF overlay) |
| ⚠ Condos | Condo project must be VA-approved. Verify on the VA condo approval list before ordering the appraisal. VA condo approval is separate from FHA approval. |
Key parameters from the BFF VA Matrix. Download the PDF for complete guidelines before pricing any VA scenario.
| Parameter | Requirement |
|---|---|
| Min FICO | 580 (AUS Approve/Eligible or Refer/Eligible with manual UW) |
| Min Loan Amount | $100,000 |
| Max Purchase Loan | $1,500,000 · 680 FICO required above $1M |
| Max Cash-Out Loan | $2,000,000 · 720 FICO required above $1M |
| Max LTV - Purchase | 100% (full entitlement, up to $1M) |
| Max LTV - Cash-Out | 100% (up to $1M) · See matrix for LTV tiers above $1M |
| Max LTV - IRRRL | 105% (to allow financing of closing costs) |
| AUS | DU Approve/Eligible · AUS Refer/Eligible + Manual UW accepted |
| Manual Underwriting | Available for Refer/Eligible · Minimum 580 FICO · Compensating factors required |
| PMI / MIP | Never required - at any LTV - ever |
| VA Funding Fee | Varies by loan type, use (first vs. subsequent), and service branch · May be financed · Waived for disability-rated veterans |
| Temporary Buydowns | Not permitted (BFF overlay) |
| MCC | Not permitted |
| Escrow Waiver | Not allowed (BFF overlay) |
| DACA Borrowers | Category C33 EAD eligible per current VA guidance · Verify current VA guidance before submitting |
| Diplomatic Immunity | Ineligible |
| Residual Income | Required per VA guidelines · Varies by family size and region · See VA Lender Handbook Chapter 26 |
| Note | Always verify current VA COE (Certificate of Eligibility) and entitlement before pricing. Reduced entitlement may require a down payment. Down payment calculation: (Loan Amount − 4 × Remaining Entitlement) at a minimum. |
Currently serving military. VA benefit is available from day one of active duty with a minimum service period. Ideal for PCS moves where purchasing makes more sense than renting.
Separated from service with honorable or general discharge. VA benefit is lifetime and reusable after prior VA loan is paid off. No expiration on the entitlement.
Eligible after 6 years of service or 90 days of active-duty service during a war period. Funding fee may differ from regular military — verify on COE.
Un-remarried surviving spouses of veterans who died in service or from a service-connected disability are eligible for VA home loan benefits. Funding fee is waived.
Veterans purchasing in high-cost markets. BFF funds VA up to $1.5M purchase — significantly above the standard conforming limit — with no PMI and 100% financing up to $1M.
Veterans with an existing VA loan who want to lower their rate via IRRRL — no income docs, no appraisal, minimal paperwork. Or tap equity via VA cash-out up to $2M.
BFF allows VA purchase loans up to $1,500,000 and VA cash-out refinances up to $2,000,000. For purchase loans above $1,000,000, a minimum 680 FICO is required. For cash-out refinances above $1,000,000, a minimum 720 FICO is required. These FICO thresholds are BFF requirements at high loan amounts — VA itself does not set a minimum credit score.
Veterans with full VA entitlement restored have no down payment requirement up to BFF's $1.5M maximum. Veterans with a remaining partial entitlement (from an active VA loan still outstanding) may need a down payment for higher loan amounts. The calculation: if (Loan Amount − 4 × Remaining Entitlement) > 0, that difference must be covered by a down payment. Always pull the COE to confirm current entitlement before pricing.
The VA Interest Rate Reduction Refinance Loan (IRRRL) — also called the VA Streamline — allows veterans with an existing VA-guaranteed loan to refinance to a lower rate with minimal documentation. No income verification, no appraisal, no credit re-qualification. Seasoning requirement: 210 days from first payment due, or 6 monthly payments made (whichever is later). A net tangible benefit of at least 0.5% reduction in P+I payment is required for fixed-to-fixed IRRRLs.
Yes. BFF allows VA manual underwriting for files with an AUS Refer/Eligible finding. The minimum FICO for manual underwriting is 580. Manual UW requires compensating factors and must satisfy VA residual income requirements based on the borrower's family size and geographic region. BFF follows VA Lender Handbook Chapter 26 for manually underwritten files with no additional BFF-specific restrictions beyond the standard 580 FICO floor.
No. VA loans never require PMI or MIP — at any LTV, ever. The VA Funding Fee (paid once at closing, or financed into the loan) replaces the ongoing insurance structure. For veterans with a service-connected disability rating, even the Funding Fee is waived. The absence of monthly mortgage insurance is one of VA's most significant financial advantages over FHA and conventional loans below 20% down.
BFF VA Overlay Matrix — Dec 2025
VA purchase above $1M requires 680 FICO. Cash-out above $1M requires 720 FICO. Below $1M, the standard 580 floor applies to both. Always check the loan amount tier before pricing.
Check current turn times before locking. VA appraisal turn times vary by region — order early.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
