The VA is now operating under a different type of system from previous times. Now they do not purchase the home, and you re-pay them, but they underwrite the loan the same as FHA. Therefore, they have to use the same guidelines.
Cal Vets usually follow what the VA does. As a veteran, (Naval Aviator), as well as being a Real Estate Broker,I have had experience with these types of situations. I just had a condo sale completed for a veteran using his VA benefits.