Current VA guidelines, updated from one source.
Four numbers and two tables decide most VA files, and all of them are here, drawn from one guideline source built on VA’s published rules: the down payment with full entitlement, the absence of mortgage insurance, the funding fee by first or subsequent use, the ratio guideline, and the residual-income table for the region.
100% financing with full entitlement
With full entitlement a purchase needs 0% down at up to 100% of the appraised value; VA backs a quarter of the loan, which is what lets the lender waive the down payment. With remaining entitlement a lender may ask for a down payment on the part VA does not back.
No monthly premium, no upfront premium
There is no monthly mortgage insurance and no upfront premium on a VA loan at any leverage; the guaranty does the work that private mortgage insurance or FHA’s premiums do elsewhere, and the funding fee is the only program charge.
First use; 3.3% after first use; exempt for many disabled veterans
VA charges a funding fee instead of mortgage insurance: 2.15% on a first-use purchase, 3.3% on a subsequent use, less with a down payment of five percent or more, and nothing for the exempt groups. The ladder below shows every tier, including the cash-out and rate-reduction refinance fees.
Residual income decides the file
Two tests, one guideline: the total-debt ratio is measured against 41%, and residual income is measured against the Northeast table below for the household’s size. VA tells lenders the residual-income test carries more weight, which is why a modest ratio does not approve a thin budget.
| Loan type | Use | Down payment | Fee |
|---|---|---|---|
| Purchase or construction | First use | less than 5% down | 2.15% |
| Purchase or construction | First use | 5% to 9.99% down | 1.5% |
| Purchase or construction | First use | 10% or more down | 1.25% |
| Purchase or construction | After first use | less than 5% down | 3.3% |
| Purchase or construction | After first use | 5% to 9.99% down | 1.5% |
| Purchase or construction | After first use | 10% or more down | 1.25% |
| Cash-out refinance | First use | Any | 2.15% |
| Cash-out refinance | After first use | Any | 3.3% |
| Irrrl | Any | Any | 0.5% |
| Manufactured home (not permanently affixed) | Any | Any | 1% |
| Loan assumption | Any | Any | 0.5% |
| Vendee loan | Any | Any | 2.25% |
| Family size | Residual income |
|---|---|
| 1 | $450 |
| 2 | $755 |
| 3 | $909 |
| 4 | $1,025 |
| 5 | $1,062 |
| Each additional member, up to seven | + $80 |
Exempt from the funding fee: veterans receiving VA compensation for a service-connected disability, those eligible for it but receiving retirement or active-duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation, service members with a pre-discharge claim rating, and active-duty service members who have received the Purple Heart. VA sets no minimum credit score; the wholesale programs behind these pages start at a 580 decision score and serve loan amounts up to $4,000,000, including loans above the conforming limit with full entitlement.
Refinances: cash-out to 100% loan-to-value after seasoning of 210 days and six payments with a net tangible benefit; rate-reduction refinances of an existing VA loan at a 0.5% fee without a VA appraisal. Current VA snapshot · updated October 1, 2026 · owner-occupied principal residences, one to four units · no VA loan limit with full entitlement · loans are assumable · no prepayment penalty · Lendmire is not affiliated with the Department of Veterans Affairs.
Not a commitment to lend, not an offer of credit, not a quote. The figures shown are current VA program parameters and wholesale overlays that change without notice and apply only after full underwriting of the borrower, the entitlement, and the property; the wholesale credit floor and maximum loan amount are lender overlays, not VA rules. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages, never the lender, and is not affiliated with the Department of Veterans Affairs. NMLS #2371349.
What a VA loan is — and how the file is qualified.
To follow a Pennsylvania VA file, follow four things in order: the guaranty, the eligibility and entitlement that unlock it, the funding fee that funds it, and the residual-income standard that qualifies it. Each rule below comes with the reason behind it.
For the program overview, see Lendmire’s VA loan program; to confirm eligibility or request a Certificate of Eligibility, see VA.gov.
The guaranty replaces the down payment
VA backs a quarter of the loan for a borrower with full entitlement, which gives the lender the same protection a sizable down payment would. That is why a Pennsylvania purchase can close with nothing down and no mortgage insurance, and why there is no VA loan limit when entitlement is full: the backing scales with the loan.
Eligibility, entitlement, and the COE
Entitlement is the share of the loan VA will back. It is full for a first use and for a veteran who has sold the earlier home and paid the loan off; it is partial when an earlier VA loan is still outstanding or was lost to foreclosure. A Pennsylvania buyer with partial entitlement can still buy, often with a down payment on the uncovered portion.
The funding fee, and who is exempt
The funding fee is VA’s one-time charge for the guaranty, set as a share of the loan by whether the benefit has been used before and by the down payment. A Pennsylvania buyer can finance it into the loan or pay it at closing, and the seller can pay it as part of concessions; the ladder in the snapshot shows every tier.
Residual income over ratios
The ratio VA names is a guideline; the residual-income table is the standard. A Pennsylvania file above the ratio can be approved when residual income clears the table by a fifth or more, and a file below the ratio can still be declined when residual income falls short, which is the reverse of how FHA and conventional loans read a budget.
The calculator turns this arithmetic into a Pennsylvania scenario: price in, down payment in, fee tier chosen, and out come the funding fee, the total loan, principal and interest, and the escrows. Add income and family size to see the ratio and a rough residual against VA’s table.
Where Pennsylvania’s veterans and service members buy — and how VA fits.
Three statewide numbers frame a Pennsylvania VA file: how many households own, what a typical home is worth on the latest estimate, and what households earn. They describe the market; they decide nothing about any one borrower.
Statewide figures provide general market context, not an appraisal or an income calculation. These are ranges, not predictions. The lender appraises one home, documents one income, and runs the residual-income test for one household of a specific size.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Pennsylvania’s veterans buy — market by market.
Where Lendmire serves Pennsylvania veterans, market by market: the cities below rank by owner households and link to local guides with Census context, the fee ladder, and a calculator seeded to local values.
Philadelphia
Close to 351,905 households own in Philadelphia (52% of the total), so VA purchases, cash-out refinances, and rate-reduction refinances are all routine files in this metropolitan market. Census context: median value near $243,100, median household income near $61,953, population near 1.58M.
Pittsburgh
Pittsburgh’s owner households run near 65,856, about 48% of households; a metropolitan market this large gives veterans and service members a steady supply of homes the guaranty can carry with nothing down. Census context: median value near $205,800, median household income near $65,742, population near 305K.
Erie
Erie’s owner households run near 21,574, about 54% of households; a metropolitan market this large gives veterans and service members a steady supply of homes the guaranty can carry with nothing down. Census context: median value near $115,200, median household income near $46,113, population near 94K.
Allentown
Allentown’s owner households run near 20,035, about 43% of households; a metropolitan market this large gives veterans and service members a steady supply of homes the guaranty can carry with nothing down. Census context: median value near $206,600, median household income near $55,494, population near 126K.
Bethlehem
About 15,509 Bethlehem households own (50% of the total), which makes this metropolitan market a steady source of the purchases the VA benefit was built for. Census context: median value near $260,400, median household income near $68,879, population near 78K.
Scranton
About 15,083 Scranton households own (50% of the total), which makes this metropolitan market a steady source of the purchases the VA benefit was built for. Census context: median value near $158,100, median household income near $50,739, population near 76K.
From the largest Pennsylvania market to the smallest, the file is qualified the same way: certificate, price, appraisal, ratio guideline, residual income, occupancy. Full entitlement carries no loan limit anywhere in the state, and the state-level appraisal requirements, including the wood-destroying insect inspection where VA calls for it, apply on every file.
Four ways Pennsylvania veterans put the VA benefit to work.
A good use of VA is one the program’s shape fits: no down payment, no mortgage insurance, residual-income underwriting, and a guaranty that scales with the loan. Four common Pennsylvania uses follow.
Buy a condominium in an approved project
VA keeps its own list of approved condominium projects, and a Pennsylvania unit in one of them is financed like a house with the association’s dues added to the ratios and the residual-income math. The appraisal covers the project as well as the unit.
Buy a first home with nothing down
The most common Pennsylvania VA file: a veteran with steady income and full entitlement buys at the appraised value with no down payment, finances the funding fee, and pays no mortgage insurance; the seller can cover closing costs within VA’s limit.
Refinance an existing VA loan
A Pennsylvania homeowner with an existing VA loan can refinance it through VA’s rate-reduction refinance loan, known as the IRRRL or streamline: a small funding fee, no VA appraisal, limited documentation, and a net tangible benefit required; the existing loan’s payment history is what the lender checks.
Buy a small multi-unit home and live in one unit
Up to four units, nothing down, no mortgage insurance: VA finances the small multi-unit home as long as the veteran lives in one unit. Rent from the other units can count toward qualifying under VA’s rules, which may ask for landlord experience or reserves.
Estimate the VA payment on a Pennsylvania price before requesting a quote.
The program’s own math on your Pennsylvania inputs: price less any down payment, plus the financed fee, amortized at the benchmark, with escrows added and nothing for mortgage insurance. The actual rate, payment, and costs come in writing from a licensed loan officer.
Pennsylvania VA payment estimate
Defaults describe Pennsylvania, not your purchase: put in the real price, the real fee tier, and the real escrows.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a VA loan quote.
Illustrative starting assumptions: a $255,000 price near Pennsylvania’s median owner-occupied home value, no down payment with full entitlement, a first-use funding fee financed into the loan, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Pennsylvania (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a VA loan quote; your rate is set by the lender at lock. The funding fee follows VA’s published table for the use and down payment entered; the residual-income figure is VA’s guideline for the region and family size, and the rough residual shown subtracts only the housing payment and the debts entered, while VA also deducts taxes, maintenance and utilities. Taxes, insurance and dues are editable estimates; closing costs are not included. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of the Department of Veterans Affairs.
Same veteran, three very different closings.
Eligibility, entitlement, the cash available, and the expected length of the loan decide which program wins. Here are the three, one next to the other.
VA, FHA, or conventional.
VA fits nearly every Pennsylvania buyer who holds eligibility: the leverage is complete, there is no insurance line in the payment, and the fee is paid once. Partial entitlement, a property that fails VA’s standards, or a fee tier that outweighs a short hold are the cases where another program competes.
FHA’s leverage is high and its credit standard is forgiving, but its insurance never comes off a full-leverage thirty-year loan. A Pennsylvania veteran comparing the two sees the premium line in the FHA payment and nothing in that line on VA. See Lendmire’s FHA loan program.
Conventional is the comparison for a veteran with savings: with twenty percent down there is no mortgage insurance and no funding fee, and the payment can beat VA with a financed fee. Below that down payment, VA usually wins for a Pennsylvania buyer. See Lendmire’s conventional loan program.
Where each one fits: VA for the eligible buyer who wants no down payment and no mortgage insurance; FHA for the buyer without eligibility who needs the small investment and the forgiving score; conventional for the buyer with twenty percent down or a strong score who wants cancellable insurance.
What to prepare for a Pennsylvania scenario review.
Gather these before a Pennsylvania review: ordinary mortgage documents plus the proof of service that opens the file.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, entitlement, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
Check these before leaning on any number for Pennsylvania: entitlement, the funding fee tier, the appraisal and VA’s property standards, the condominium approval, residual income, and occupancy.
Use these checks to keep the Pennsylvania file clean and fundable.
The list is short because the program is: entitlement, the fee, and the property decide most Pennsylvania files before income is even opened.
- Confirm the entitlement: the COE states the entitlement available; full entitlement carries no loan limit.
- Know the fee: disabled veterans receiving compensation and the other exempt groups pay no fee.
- Check the project: the lender checks the list before the appraisal is ordered.
Full or remaining entitlement
The COE states the entitlement available, and that single line decides whether a Pennsylvania purchase closes with nothing down at any price the appraisal supports or needs a down payment on the part VA does not back. A veteran keeping an earlier VA-financed home as a rental is the usual remaining-entitlement case, and the file still works.
The funding fee tier and the exemptions
A subsequent use costs more than a first use, and five or ten percent down lowers either tier; the exemption removes the fee entirely. A Pennsylvania veteran with a pending disability claim should raise it early, because a rating granted before closing waives the fee and one granted after can bring a refund.
Condominium project approval
VA finances a Pennsylvania condominium only in a project on its approved list; an unlisted project can be submitted, which takes time and the association’s cooperation. The lender checks the list before the appraisal, and the dues enter the ratios and residual income.
Assumption and release of liability
Years after closing, the assumption clause can matter more than the rate: a Pennsylvania buyer may take over the loan with the lender’s approval. The original veteran should ask for a release of liability and, where the buyer is also a veteran, a substitution of entitlement.
Seller concessions and the fees a veteran may not pay
VA also limits what a veteran can be charged: the lender’s flat charge is capped, and certain fees are not allowed on a VA file at all, which is why the contract often has the seller or the lender cover them. A Pennsylvania loan officer reviews the fee sheet against VA’s list before the contract is final.
From a Pennsylvania Certificate of Eligibility to keys in hand.
From the certificate to the closing table, a Pennsylvania VA purchase takes four steps, and each one carries a VA rule inside it.
COE and pre-approval
A Pennsylvania pre-approval is a sizing exercise: the certificate, the income, the family size, the funding fee tier, and the price. The loan officer confirms eligibility and entitlement against the program rules and puts the pre-approval in writing for the offer.
Contract and appraisal
With the contract signed, the lender requests a VA-assigned appraiser, who values the Pennsylvania home and checks it against VA’s property requirements; the Notice of Value is issued on the report. Seller concessions are checked against VA’s cap, and any condominium project approval is confirmed.
Underwriting
The file is scored by the automated system or underwritten manually, with income, assets, credit, and residual income documented. Seasoning after a credit event is confirmed from the discharge or transfer papers, the funding fee tier is confirmed from the COE, and the ratio is measured against VA’s guideline.
Closing
Closing is where the fee becomes real: financed into the total loan or paid at the table, with the seller’s concessions applied and the fees a veteran may not pay removed from the sheet. The Pennsylvania buyer takes the keys and VA backs the lender.
A brokerage that puts the benefit to work.
Lendmire never lends. It reads a Pennsylvania file against VA, FHA, and conventional, matches the program to the profile, and keeps the funding fee and the residual-income test in front of the buyer before anything is signed.
Three programs, one set of numbers
The comparison printed on this page is run for real on every Pennsylvania file: VA with the fee financed beside FHA with its premiums beside conventional with private insurance, and the written terms follow from whichever column serves the veteran.
The fee and the entitlement explained before the offer
A Pennsylvania veteran should never discover at the closing table that the fee was the subsequent-use tier or that entitlement was partly in use. The loan officer reads the certificate aloud, so to speak: the tier, the leverage, and the conventional alternative on the same numbers.
Licensed, consumer-purpose, in writing
Lendmire is licensed in sixteen states for consumer mortgages, each loan is a consumer-purpose transaction with the full set of disclosures, and every figure a Pennsylvania buyer relies on, from the fee to the leverage to the final terms, comes in writing from a licensed loan officer.
Trusted by veterans & families alike.
Pennsylvania VA loan FAQs
Plain answers to the questions Pennsylvania veterans ask most about VA loans, in the order they usually ask them.
What is a VA loan, and who is it for?
VA runs a guaranty program for veterans’ home loans; it is not a lender. A Pennsylvania buyer applies through a lender or broker, the lender underwrites to VA’s rules, and VA stands behind part of the loan. Purchases, cash-out refinances, and rate-reduction refinances of existing VA loans are all inside it.
Who is eligible for a VA loan in Pennsylvania?
Service decides it: a minimum period of active duty, a qualifying period in the Guard or Reserve, or eligible surviving-spouse status, with a character of discharge VA accepts. A Pennsylvania buyer unsure of the answer can request the certificate from VA.gov or have the lender pull it.
How do I get a Certificate of Eligibility?
Request it on VA.gov, ask the lender to pull it, or mail VA Form 26-1880. The supporting document depends on status: DD-214 for veterans, a statement of service for active duty, NGB Forms 22 and 23 for the Guard, a points statement for the Reserve, VA Form 26-1817 for surviving spouses.
What is the VA funding fee, and do I have to pay it?
The fee is the program’s only charge for the guaranty, and the snapshot shows the tiers. A Pennsylvania buyer who is receiving VA disability compensation, or who falls in one of the other exempt groups, pays nothing; everyone else pays the tier for their use and down payment, usually by financing it.
Is there a VA loan limit in Pennsylvania?
There is no VA loan limit for a veteran with full entitlement; the lender’s own maximum loan amount, shown in the snapshot, is the practical ceiling. A Pennsylvania buyer with remaining entitlement should ask a loan officer how the county figure affects the file.
Can I use a VA loan to buy a condominium?
Condominiums are eligible in approved projects, and VA keeps its own list rather than relying on FHA’s or the agencies’. The association’s documents, owner-occupancy mix, and litigation all bear on approval, and dues count in the ratios.
What does a VA appraisal check?
It checks what the home is worth and whether it meets VA’s requirements. Older Pennsylvania homes draw required repairs more often; most are settled before closing, and the escape clause protects the deposit if the value falls short and the price cannot be renegotiated.
Is a VA loan assumable?
Yes, with the lender qualifying the assumptor. It is one of the program’s quieter advantages for a Pennsylvania owner who may sell into a higher-rate market, provided the release of liability and the entitlement are handled at the assumption.
Can I get a VA loan after a bankruptcy or foreclosure?
Yes, once the event is seasoned under VA’s rules: a bankruptcy counts from discharge, a foreclosure from the transfer of title, each with its own waiting period and exceptions for documented extenuating circumstances. Clean recent housing history matters most, and a foreclosed VA loan leaves entitlement in use until the loss is repaid.
Can the seller pay my closing costs on a VA loan?
Within VA’s rules, yes: ordinary closing costs are not capped, and concessions such as the fee, prepaids, and debt payoff are capped as a share of the value. The loan officer checks the contract against both.
VA, FHA, or conventional in Pennsylvania: compared on your numbers.
A Pennsylvania VA purchase starts with three questions: eligibility, the fee, and the price. Lendmire answers them, compares the programs, and writes up the one that fits.
This guide covers Pennsylvania — for the program overview, see Lendmire’s VA loan program.
All Pennsylvania city guides (6): Allentown · Bethlehem · Erie · Philadelphia · Pittsburgh · Scranton
Related programs: Conventional Loans · FHA Loans · Jumbo Loans