Key facts
- VA loan purchase denial rates in 2025 were 8.2%, lower than USDA, FHA, and conventional programs.
- VA loans had the lowest average interest rate (6.084%) for borrowers with sub-700 credit scores.
- The typical VA appraisal timeline is seven to 10 days, comparable to conventional and FHA processes.
- Brokers accounted for 50.3% of VA loans closed in Travis County, Texas, compared to 11.7% nationally.
- eLEND is developing a VA MPR Renovation Loan to cover essential repairs like roof or HVAC replacements.
- The VA MPR Renovation Loan can provide up to $35,000 for repairs.
Mortgage brokers can expand their reach into underserved veteran and active-duty military markets by leveraging VA loan programs, according to industry experts speaking at an Association of Independent Mortgage Experts (AIME) event. Gay Veale, president of Guidon Mortgage Co., highlighted research debunking common misconceptions about VA loans, such as higher denial rates or costs. A white paper, analyzing 138 million Home Mortgage Disclosure Act records, found that VA loan purchase denial rates in 2025 were 8.2%, lower than USDA, FHA, and conventional programs. Veale also noted that VA loans offer competitive interest rates, even for borrowers with lower credit scores, and that appraisal processes are comparable to other loan types, with specific recourse options for borrowers.
Nathan Knottingham, a loan officer with Edge Home Finance and co-founder of Vetted VA, emphasized a data-driven approach to targeting veteran borrowers. Using Austin, Texas, as an example, Knottingham pointed to the significant number of veteran renters and homeowners with mortgages as a key opportunity for originators. He noted that brokers hold a substantial market share of VA loans in Austin, far exceeding the national average, suggesting a prime market for brokers to focus on.
Shaun Hamman, senior vice president of renovation and construction services at eLEND, introduced a new product, the VA MPR Renovation Loan, designed to help VA buyers overcome deal-killing repair issues identified during inspections. This loan aims to cover essential repairs, such as roof replacements or septic system work, up to $35,000, allowing deals to close when traditional renegotiations fail. eLEND expects to relaunch the product in early 2027 after a temporary pause related to Ginnie Mae securitization requirements.