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. See A2-4-01, Master Agreement Overview, for additional information.
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 $625,500 (for contiguous states, the District of Columbia, and Puerto Rico) and $938,250 (for Alaska, Hawaii, Guam, and the U.S. Virgin Islands), regardless of the number of units in the property.
The table below provides references to the Announcements that have been issued that are related to this topic.