Become a Lender of VA Home Loans
For more than 80 years, the Department of Veterans Affairs (VA) has supported Veterans and Service members with homeownership through the VA-guaranteed home loan.
When a Veteran borrower uses their earned benefit, VA guarantees a portion of the home loan. As a result, lenders often have the flexibility to offer eligible borrowers advantages–such as the zero-down-payment option–that are not available to non-VA homebuyers.
VA allows different lender types to participate in the VA Home Loan Program. Please reference the following chart for a brief overview of VA lender classifications before applying for VA approval.
| VA Lender Classification: | Definition/Requirements: | VA Lending Authority: |
|---|---|---|
| Supervised Lender | A lender that is subject to mandatory periodic examinations and supervision by an agency of the United States. | Automatic |
| Non-supervised Lender with Automatic Authority | A lender that is not supervised, who has applied for VA automatic authority and has been granted automatic authority. | Automatic |
| Non-supervised Lender without Automatic Authority | A lender that does not have VA automatic authority and either acts as an “Agent” to a “Sponsoring Lender” or submits required loans on a prior approval basis. Note: A “Sponsoring Lender” is a lender with VA automatic authority that utilizes an Agent to perform various actions on behalf of the sponsoring lender in originating VA loans |
Not Automatic |
For more information on requirements, documentation, fees, restrictions, etc., that may be required to register and be approved, please review VA Pamphlet 26-7 (Lenders Handbook), Chapter 1. A link to the Lenders Handbook, and other resources is listed below under “Resources and References”.
Program Participant Management (PPM) System
All lenders participating in the VA Home Loan program must register in VA’s Program Participant Management (PPM) system, a self-service tool that enables lenders to apply for VA approval, manage their profile information, complete annual renewal requirements, submit requests such as applications for automatic authority, underwriter applications, agent recognition requests and remit related fees.
All lenders, regardless of classification, are required to maintain at least one VA Relationship Manager (VARM) and designate specific points of contact (POC) in the PPM system. The VARM is responsible for all lender actions in the system, while designated POCs will receive specific correspondence from VA depending on POC type.
A technical guide to the PPM system can be accessed at the link below.
Resources and References
- VA Pamphlet 26-7 (Lenders Handbook)
- Lender PPM System Training Series
- LGY Hub
- Sign up for VA Updates
- ID.me Help Center
Questions
Questions on the application process may be submitted through ServiceNow, the VA’s online help desk and support service
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