Maximize Your VA Loan Benefit

Up to $3,000,000. While the Department of Veterans Affairs formally eliminated statutory loan limits in 2020, most retail banks still quietly cap their zero-down VA loans between $1M and $2.5M. Because Watermark is a direct Ginnie Mae Seller/Servicer with in-house underwriting, we allow eligible veterans with full entitlement to purchase up to $3 million with zero down payment.

Yes, by applying a flat percentage down payment. For homes exceeding the $3,000,000 zero-down limit, Watermark requires a sensible down payment calculated as a percentage of the entire purchase price. For example, on a $4,000,000 purchase, you would put 10% down, bringing your total out-of-pocket down payment to $400,000.

We offer both the VA IRRRL (Streamline) and VA Cash-Out Refinance.

• VA IRRRL (Interest Rate Reduction Refinance Loan): Often called a “VA streamline refinance,” this is used to lower the interest rate or switch from an adjustable-rate to a fixed-rate mortgage on an existing VA loan. It often requires no appraisal, no income verification, and sometimes no underwriting — making it faster than standard refinances. A funding fee of 0.5% applies (waived for eligible disabled veterans).

• VA Cash-Out Refinance: Allows qualified veterans to borrow against the equity in their home. A funding fee of 2.15% (first-use) or 3.30% (subsequent-use) applies, which is also fully waived for eligible disabled veterans.

The VA program permits up to 100% LTV on a cash-out refinance, but most lenders cap lower to manage risk. Watermark structures cash-out LTV to stay 10 percentage points below our purchase LTV at the same loan size — a conservative posture that keeps our risk on a cash-out file in line with how we underwrite the same loan size on a purchase:

• Standard VA cash-out (loan amount up to $3M): 90% LTV

• VA Jumbo cash-out, $3M–$5M: 80% LTV

• VA Jumbo cash-out, $5M–$7.5M: 75% LTV

• VA Jumbo cash-out, $7.5M–$10M: 70% LTV

• VA Jumbo cash-out, above $10M: case-by-case

Exceptions of 5–10% above these limits may be considered based on compensating factors such as FICO, reserves, residual income, and equity history.

By comparison, conventional jumbo cash-out is typically capped at 60–75% LTV — meaningfully tighter than VA. On a $3,000,000 home, Watermark VA cash-out delivers up to $2,700,000 versus roughly $1,800,000–$2,250,000 through a conventional jumbo cash-out — up to $900,000 more accessible equity. On a $5,000,000 home, $4,000,000 Watermark VA versus $3,000,000–$3,750,000 conventional.

No. VA loans never require monthly mortgage insurance. Whether you put 0% or 20% down, there is no Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP) attached to your monthly payment. This preserves your capital and keeps your monthly payment significantly lower than a comparable Conventional or FHA loan.

It is fully waived for eligible disabled veterans. If you have a service-connected disability rating of 10% or higher, are a Purple Heart recipient on active duty, or are a qualifying surviving spouse, the VA funding fee is zero. For non-exempt borrowers, this is a one-time fee (ranging from 1.25% to 3.3% depending on your down payment and prior VA use) that goes directly to the VA to sustain the program. It does not need to be paid in cash and is typically rolled directly into your loan amount.

Yes. Your VA home loan benefit is a lifetime benefit, not a one-time perk. You can reuse your full benefit after selling a previous VA-financed home and paying off the loan. You can also have two active VA loans at the same time if you have sufficient remaining entitlement — a common scenario for active duty service members who retain a prior home after a PCS move and want to use VA again for the new primary residence. The math depends on your original loan amount, your remaining entitlement, and current county loan limits (as established by the Department of Veterans Affairs and FHFA).

Primary residences up to 4 units. You can use your VA benefit to purchase a single-family home, a VA-approved condominium, or a multi-family property (such as a duplex, triplex, or fourplex), provided you occupy at least one of the units as your primary residence. You cannot use a VA loan to purchase a dedicated investment property, a vacation home, or vacant land without a home being built.

There is no federal minimum, but lenders set internal limits. While the VA itself does not enforce a hard credit score floor, secondary market investors do. Because Watermark underwrites its loans in-house, we review your complete financial profile. We can often manually underwrite complex files and approve high-balance VA Jumbo loans with more flexibility than standard retail banks.

Yes, via a VA Cash-Out Refinance. If you currently have a Conventional or FHA loan, you can refinance it into a VA loan to eliminate your monthly PMI or tap into your home’s equity. If you already have a VA loan, you can utilize a VA Streamline Refinance (IRRRL) to lower your interest rate quickly, which in most cases requires no home appraisal and no income verification.

Yes — VA loans are generally assumable, subject to qualification and lender approval. The assuming party does not need to be a veteran, but must meet credit and income qualifications. The original veteran’s entitlement remains tied to the loan until the assuming party either is a veteran substituting their own entitlement, or pays the loan off in full.