FHA and VA Loan Requirements: How to Evaluate an Offer

FHA and VA loan requirements depend on the loan purpose, the property, your finances, and the lender’s review. A program flyer can help you identify questions, but a list of features cannot tell you whether your application will qualify. Start by asking which program the proposed loan uses and which conditions apply to your file.

Evaluate an FHA offer under FHA rules

FHA insures eligible loans made by lenders. HUD’s FHA loan overview explains the program and points borrowers toward an FHA lender. When reviewing an FHA offer, ask the lender to identify the purchase or refinance option and explain its current credit, income, property, and documentation requirements.

Budget for more than the advertised down payment. Ask for a breakdown of closing costs, prepaid expenses, and applicable upfront and ongoing mortgage-insurance costs. HUD publishes FHA mortgage-insurance information. If you plan to use a gift or assistance program, ask what documentation and eligibility rules apply before relying on those funds.

Evaluate a VA offer under VA rules

VA eligibility and lender approval are separate parts of the process. A Certificate of Eligibility helps establish eligibility based on service history and duty status. VA’s home-loan eligibility guidance also requires the borrower to meet applicable credit, income, and occupancy requirements from VA and the lender.

For a purchase, VA says the borrower must qualify for a COE, meet lender and VA standards, and intend to live in the home. Review the VA purchase-loan requirements before treating a general program description as a personal answer.

VA-backed loans do not require monthly mortgage insurance, but a funding fee may apply unless an exemption is available. Closing costs still matter. Ask the lender to explain the VA funding fee and other loan costs for the proposed transaction.

An automated result is not a final approval

For FHA, HUD’s TOTAL Mortgage Scorecard guidance distinguishes automated processing from manual underwriting. TOTAL is accessed through an automated underwriting system; it is not the system itself. HUD says a lender cannot accept or deny an FHA mortgage solely on the TOTAL assessment. The lender must underwrite the loan under the applicable handbook guidance.

Ask whether your FHA file will follow the TOTAL or manual-underwriting path, what remains to be verified, and whether further review is required. For more detail, read our manual underwriting and VA mortgage review guide and our FHA compensating factors and DTI guide. For credit-score questions specifically, use our FHA and VA credit-challenge guide.

Questions to ask about an FHA or VA offer

• Which loan purpose and property type does the offer cover?
• Which requirements come from the government program, and which are lender standards?
• What income, asset, credit-history, and property records must be reviewed?
• What funds are needed for closing and any required reserves?
• For a refinance, which payment-history, timing, and benefit requirements apply to this specific option?
• What conditions remain before a final lending decision?

Keep the answers tied to the specific loan you are considering. A purchase rule, a repair feature, and a refinance option should not be treated as interchangeable.

Contact NorthStar Funding with the property state, loan purpose, approximate price or value, and a brief summary of your finances. Ask for a secure document channel before sending account statements, identity documents, or service records.

Reviewed October 13, 2026. General education only; not an approval, rate quote, or commitment to lend. Current program rules, lender acceptance, and property eligibility require individual review.