Article SummaryAIME Fuse panelists said VA lending offers broker growth opportunity but requires entitlement accuracy. A Polygon Research review of HMDA data cited 2025 VA denials at 8.2%. Appraisal challenge options and local targeting data were highlighted.
Mortgage brokers who are looking to better serve the veteran and active-duty military population through U.S. Department of Veterans Affairs (VA) loan programs have several opportunities for growth along with many factors to consider, according to panelists who spoke Thursday at an Association of Independent Mortgage Experts (AIME) event.
She said the typical timeline of seven to 10 days is comparable to conventional and FHA processes. VA borrowers also have two formal options to contest an appraisal.
The Tidewater Initiative can be invoked when the appraiser expects the value to come in below the contract price, and it gives buyers, sellers and agents two days to provide comparable sales to support a higher value. And if they believe the appraiser has erred, buyers may also use a reconsideration of value (ROV) to challenge details about the comparable sales. No other loan program offers two paths to challenge an appraisal, Veale said. Her favorite myth? The idea that a VA loan can only be used once. But full entitlement is restored when a prior VA loan is repaid and the home is sold. With full entitlement, a borrower could purchase and own multiple properties. “On one VA loan entitlement, a veteran owned six [units], and he occupied every single one of them as his primary residence,” Veale said. “It’s perfectly legal and it’s exactly what it was designed for.” Generating data-driven market tactics Brokers should use a data-driven approach for targeting and serving veteran borrowers in a defined market, according to Nathan Knottingham, a Texas-based loan officer with Edge Home Finance and co-founder of Vetted VA. Knottingham centered his presentation on the Polygon white paper by delving into housing and demographic data in Austin and surrounding Travis County, Texas, which is home to 1.4 million people. The research identified 32,000 veteran households in the county. Among that group, 11,000 were renters, 12,000 were homeowners with mortgages and 9,000 owned their home free and clear. Knottingham said a high percentage of renters should raise the eyebrows of any originator. “One-third of that marketplace in one county — why would I not be honing in on that?” he asked. According to Polygon’s analysis of Ginnie Mae issuance, brokers accounted for 50.3% of the 6,000-plus VA loans closed in Travis County during the year ending in August 2026. That makes Austin a prime market for brokers, who were responsible for only 11.7% of VA originations at the national level. Going deeper, the analysis found that the VA loans closed in the county over the past year had an average loan size of $412,000, an average FICO score of 716, a debt-to-income ratio of 43%, a loan-to-value ratio of 95% and a note rate of 5.56%. This matters, Knottingham said, because brokers should know who the fundable borrowers are before they start conversations. The same goes with evaluating wholesale lending and real estate partners — present them with evidence of who the typical borrower is. The research found there were 812 active VA loan officers in Travis County for the year ending July 24, 2026. But only 17 of them did at least five loans. The top LO held a market share of 2.6% and the top three lenders combined do 20.1% of the VA business. “This is not a spray-and-pray methodology.It shouldn’t be,” he said. “The same reason we’re fighting really aggressive marketing tactics is because this is a market that is identifiable.”
Saving deals with renovation loans Shaun Hamman, senior vice president of renovation and construction services at eLEND, told the audience at AIME Fuse that prospective VA buyers face a common problem. They’ll fall in love with a home and sign the contract, but the ensuing inspection report reveals a major repair that must be addressed before the deal can close. Traditionally, their options have been to renegotiate with the seller, which often fails, or to walk away, costing them the inspection fees and the emotional investment. And the cycle could repeat itself on the next home. Hamman said that eLEND is developing a proprietary product known as the VA MPR Renovation Loan to address these situations. It’s an alternative to a full VA renovation loan, which has a higher price tag and requires a contractor bid to be in hand before an appraisal can even be ordered. And it’s designed for “large-ticket repair items” that must be crossed off the list as part of the VA’s minimum property requirements. “We can simply get a quote for the repairs that need to be completed and close the loan, and not have to go through the vetting of the contractor process. We’re going to handle all of that post-closing,” Hamman said. He outlined three “deal killers” that come up frequently in the inspection process — roof replacements, heating and cooling replacements, and septic system or well repairs. eLEND’s product provides up to $35,000, inclusive of contingency and inspection fees, to keep these issues from stalling a home sale. He also noted that a recent change in Ginnie Mae’s securitization requirements has put a pause on the offering, but the company expects to make changes and relaunch it in early 2027. The MPR Renovation Loan is not for kitchen or bathroom remodels, which can be funded through a “higher-touch” loan product offered by eLEND. But it includes a much lower loan-level price adjustment (LLPA) to make the rate conversation more “palatable,” with a loan initially priced at 6% increasing to 6.25% rather than 7% or higher, according to Hamman.
