source:
  type: guide
  id: va-m26-7-ch04-t01
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, Topic 1 — General
    Underwriting Information
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, Topic 1 — General
    Underwriting Information.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch04-t01-full
  canonical_id: va-m26-7-ch04-t01-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, Topic 1 — General Underwriting
    Information
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, Topic 1 — General
      Underwriting Information
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 84a199d5bffee03b
    fetched_at: '2026-05-23T01:53:52Z'
    content_hash: sha256:ed2c25537e999a4e2d8f0edd102b19b58213237b1a9caa927fddfca170b14a9c
    paragraph_quote: '1. General Underwriting Information Change Date February 22,
      2019 • This chapter has been revised in its entirety. a. Underwriting Information
      VA Underwriting Standards require lenders to always utilize the following guidance
      when underwriting VA-guaranteed loans: Lenders are encouraged to make VA loans
      to all qualified Veterans who apply. VA’s underwriting standards are intended
      to provide guidelines for underwriters. Decisions must be based on sound application
      of the standards, and underwriters are expected to use good judgment and flexibility
      in applying underwriting guidelines. Not all possible circumstances are addressed
      therefore, underwriters must apply reasonable judgment and flexibility in administering
      this important Veterans’ benefit. b. Basic Requirements By law, VA may only
      guarantee a loan when it is possible to determine that the Veteran is a satisfactory
      credit risk, and has present or verified anticipated income that bears a proper
      relation to the anticipated terms of repayment. VA’s underwriting standards
      are incorporated into VA regulations at 38 C.F.R. 36.4340 and explained in this
      chapter. This chapter addresses the procedures for verifications and analysis
      involved in underwriting a VA-guaranteed loan. In the event the lender fails
      to perform their responsibilities, VA may take administrative actions including
      removal of authority to underwrite and close VA loans. Continued on next page
      VA Pamphlet 26-7, Revised Chapter 4: Credit Underwriting 4-3 1. General Underwriting
      Information, continued c. Lender’s Responsibilities Lenders are responsible
      for: • developing all credit information, • properly obtaining all required
      verifications and the credit report, • ensuring the accuracy of all information
      on which the loan decision is based, • complying with the law and regulations
      governing VA’s underwriting standards, and with VA’s underwriting policies,
      procedures, and guidelines, and • certifying as to compliance with all of the
      above. Continued on next page VA Pamphlet 26-7, Revised Chapter 4: Credit Underwriting
      4-4 1. General Underwriting Information, continued d. Lender’s Procedures Digital
      signatures can be accepted as an original signature or wet signature as defined
      by the Electronic Signatures in Global and National Commerce Act, commonly referred
      to as the E-sign Act. The procedures below address only the credit underwriting
      of the loan. Chapter 5 of this handbook provides all procedures that must be
      completed when making a VA loan. Step Action 1 Initiate the VA and Credit Alert
      Interactive Voice Response System (CAIVRS) inquiries described in Topic 4, Subsection
      c of this chapter. 2 Obtain all necessary verifications. The borrower’s authorization
      can be obtained separately for the lender’s required verifications, or on one
      blanket authorization form. The Certificate of Eligibility (COE) obtained from
      WebLGY provides verification of the amount of the Veteran’s available entitlement,
      verification of exempt/non-exempt from the VA Funding Fee, and the amount of
      VA monthly service connected disability compensation. Order the COE before ordering
      the VA appraisal. The tri-merged credit report and verifications can be ordered
      by the lender or its agent or a party designated by the lender to perform that
      function. However, these documents must always be delivered by the credit reporting
      agency or verifying party directly to the lender or its agent, and never to
      another party. VA only permits the Veteran to pay for the credit report invoiced
      amount, not any additional costs that the lender may incur through other parties
      for obtaining the credit report. Continued on next page VA Pamphlet 26-7, Revised
      Chapter 4: Credit Underwriting 4-5 1. General Underwriting Information, continued
      d. Lender’s Procedures, continued Step Action 3 Complete VA Form 26-6393, Loan
      Analysis, in conjunction with a careful review of the loan application and supporting
      documentation. Provide any explanations in item 47- Remarks. The form is not
      required for Interest Rate Reduction Refinancing Loans (IRRRL) except IRRRLs
      to refinance delinquent VA loans. 4 Indicate the loan decision in Item 51 of
      the VA Form 26-6393, Loan Analysis, after ensuring that the treatment of income,
      debts, and credit is compliant with VA underwriting standards. 5 A designated
      officer of the lender authorized to execute documents and act on behalf of the
      lender must complete the following certification: “The undersigned lender certifies
      that the loan application, all verifications of employment, deposit, and other
      income and credit verification documents have been processed in compliance with
      38 C.F.R. Part 36; that all credit reports obtained in connection with the processing
      of this borrower’s loan application have been provided to VA; that, to the best
      of the undersigned lender’s knowledge and belief, the loan meets the underwriting
      standards recited in chapter 37 of Title 38 U.S.C. and 38 C.F.R. Part 36; and
      that all information provided in support of this loan is true, complete and
      accurate to the best of the undersigned lender’s knowledge and belief.” Continued
      on next page VA Pamphlet 26-7, Revised Chapter 4: Credit Underwriting 4-6 1.
      General Underwriting Information, continued e. Underwriting Special Types of
      Loans The underwriting standards and procedures explained in this chapter generally
      apply to purchase and regular “cash-out” refinance loans. However, some special
      underwriting considerations also apply and can be found in Chapter 7 of this
      handbook. f. Refinancing Loans The underwriting standards detailed in this chapter
      apply to purchases and regular “cash-out” refinances. IRRRLs generally do not
      require any underwriting unless the loan is delinquent. IRRRLs made to refinance
      VA loans 30 days or more past due must be submitted to VA for prior approval
      underwriting. The underwriter must have concluded that: • the circumstances
      that caused the delinquency have been corrected, and • the Veteran can successfully
      maintain the new loan. Refer to Chapter 6 of this handbook for details on all
      types of refinancing loans. VA Pamphlet 26-7, Revised Chapter 4: Credit Underwriting
      4-7'
  judgment: false
