Seeking a Unicorn Lender: VA Loan for a 4-6 Unit Multi-Family in DC (Joint Entitlement)

Hey everyone,

I’m part of a Veteran-owned real estate team in the DMV. We have a dual-military couple (both with full entitlement) looking to purchase a multi-family property in Washington, DC.

They are targeting 4 to 6 units. They will occupy one unit as their primary residence.

The Context:

• 4 Units: Standard VA guidelines, but many lenders have overlays regarding "self-sufficiency" or high DTI for multi-family.
• 5-6 Units: Technically allowed under VA Pamphlet 26-7, Chapter 3, which states that two Veterans can purchase up to 6 units (4 base units + 1 per additional Veteran).

The Challenge: We are hitting "The Wall of Overlays." Most retail lenders and even some "military-specialist" banks have a hard internal cap at 4 units because they can't easily package 5-6 unit loans for the secondary market (Ginnie Mae). Additionally, finding a lender comfortable with the DC market’s unique multi-family appraisals has been a hurdle.

Our Ask: Does anyone have a specific recommendation for a lender or Loan Officer who has actually closed a joint entitlement 5-6 unit loan?

We need a lender that:

1. Doesn't have an automatic 4-unit overlay.
2. Knows how to calculate the joint guaranty for more than 4 units.
3. Can handle the "Self-Sufficiency Test" (required by VA for 3-4 units, and typically applied to 5-6 units as well).
4. Has experience with DC-specific regulations (TOPA, etc.) as it relates to multi-family.

If you’ve pulled this off—or if you’re an LO who loves the "weird" files that require a manual underwrite—please drop a comment or DM me. My clients are ready to move, they just need a lender who knows the handbook as well as they do.