source:
  type: guide
  id: va-m26-7-ch03-t09
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 9 — Amortization
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 9 — Amortization.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch03-t09-full
  canonical_id: va-m26-7-ch03-t09-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 9 — Amortization
  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 3, Topic 9 — Amortization
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 73e5d344e2743889
    fetched_at: '2026-05-23T01:53:52Z'
    content_hash: sha256:b452379ce6dbdb528896ce1d9ac9ca8a9cf03b5fab6fa9af7766dc2dc17c2bbe
    paragraph_quote: '9. Amortization Change Date November 8, 2012, Change 21 • This
      section has been updated to make minor grammatical edits. a. Requirement All
      VA loans must be amortized if the maturity date is beyond 5 years from the date
      of the loan. Loans with terms less than 5 years are considered term loans and
      need not be amortized. Generally, for amortized VA loans: • payments must be
      approximately equal, • principal must be reduced at least once annually, and
      • the final installment must not exceed two times the average of the preceding
      installments. Exceptions to these requirements are made in the case of: • GPMs
      – See section 7 of chapter 7, • Growing Equity Mortgages (GEMs) – See section
      8 of chapter 7, • alternative amortization plans prior approved by VA, and •
      construction loans. b. Alternative Amortization Plans Certain amortization plans
      which do not meet the requirements described in subsection a above may be used
      if approved in advance by VA. A lender may submit an amortization plan to VA
      for prior approval if the plan: • is generally recognized; that is, is used
      extensively by established lending institutions, but • does not meet the requirements
      of approximately equal periodic payments and a reduction in principal not less
      often than annually. Exception: GPMs and GEMs. Continued on next page VA Pamphlet
      26-7, Revised Chapter 3: The VA Loan and Guaranty 3-21 9. Amortization, Continued
      c. Special Provisions for Construction Loans See “Amortization” in section 2
      of chapter 7. d. Standard and Springfield Plans The Standard and Springfield
      plans satisfy VA amortization requirements. • The Standard plan provides for
      equal payments over the life of the loan. The amount applied to interest decreases,
      with a corresponding increase in the amount applied to principal. • The Springfield
      plan provides for gradually decreasing payments over the life of the loan. The
      amount applied to interest decreases, while the amount applied to principal
      remains constant. VA Pamphlet 26-7, Revised Chapter 3: The VA Loan and Guaranty
      3-22'
  judgment: false
