DOCSLIB.ORG

VA Underwriting Guidelines Version 1.8.2021

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
VA Underwriting Guidelines Version 1.8.2021 CLICK HERE FOR TEMPORARY COVID-19 GUIDELINES VA Underwriting Guidelines Version 1.8.2021 PURCHASE CASH-OUT/REGULAR REFINANCE VA EEM HIGH BALANCE INTEREST RATE REDUCTION REFINANCE LOAN (IRRRL) CLICK HERE FOR TEMPORARY COVID-19 GUIDELINES FCM VA UNDERWRITING GUIDELINES 1.01 Table of Contents 1.02 Program Overview ............................................................................................................................ 6 1.02.01 Multiple Risk Layering ........................................................................................................... 7 1.03 Program Terms .................................................................................................................................. 8 1.03.01 Program Code ....................................................................................................................... 8 1.03.02 Term ...................................................................................................................................... 8 1.03.03 Loan Type .............................................................................................................................. 8 1.03.04 Occupancy Type .................................................................................................................... 8 1.03.05 Loan-To-Value ....................................................................................................................... 9 1.03.06 VA Funding Fee ..................................................................................................................... 9 1.03.07 Maximum Loan Amount ..................................................................................................... 12 1.03.08 Entitlement/Guaranty Calculations .................................................................................... 13 1.03.09 Acceptable AUS Findings ..................................................................................................... 14 1.03.10 AUS Reduced Documentation ............................................................................................. 15 1.03.11 VA Prior Approval Loans...................................................................................................... 15 1.03.12 Secondary Financing ........................................................................................................... 17 1.03.13 Sales Contracts .................................................................................................................... 18 1.03.14 Escrows ............................................................................................................................... 19 1.03.15 Repair Escrows .................................................................................................................... 19 1.03.16 Ineligible Transactions ........................................................................................................ 20 1.03.17 VA EEM Mortgages ............................................................................................................. 20 1.03.18 VA High Balance Transactions ............................................................................................. 23 1.03.19 Manufactured Homes Requirements and Restrictions ....................................................... 23 1.04 Borrower Eligibility .......................................................................................................................... 25 1.04.01 Eligible Borrowers ............................................................................................................... 25 1.04.02 Certificate of Eligibility ........................................................................................................ 27 1.04.03 Ineligible Borrowers ............................................................................................................ 28 1.04.04 Non-Occupant Co-Borrowers .............................................................................................. 29 1.04.05 Power of Attorney (POA) .................................................................................................... 29 Section 1.01 Return to Page 1 VA Programs 1.8.2021 Underwriting Guidelines Page 2 of 107 CLICK HERE FOR TEMPORARY COVID-19 GUIDELINES 1.04.06 CAIVRS and LDP/GSA ........................................................................................................... 31 1.04.07 Social Security Number Verification ................................................................................... 31 1.05 Employment & Income ................................................................................................................... 32 1.05.01 Overview ............................................................................................................................. 32 1.05.02 Length of Employment ........................................................................................................ 32 1.05.03 Salaried or Hourly Wage Earner .......................................................................................... 32 1.05.04 Military Income Sources...................................................................................................... 34 1.05.05 Self-Employed ..................................................................................................................... 36 1.05.06 Commission Income ............................................................................................................ 38 1.05.07 Rental Income ..................................................................................................................... 39 1.05.08 Other Types of Income ........................................................................................................ 40 1.05.09 New Employment ................................................................................................................ 46 1.05.10 Contracts and Offer Letters ................................................................................................. 46 1.05.11 Non-Taxable Income ........................................................................................................... 46 1.05.12 Temporary Leave/Short Term Disability ............................................................................. 47 1.05.13 Income Types Not Addressed ............................................................................................. 48 1.05.14 Unacceptable Sources of Income ........................................................................................ 48 1.05.15 4506-C Requirements ......................................................................................................... 49 1.05.16 IRS Tax Transcript Requirements ........................................................................................ 49 1.05.17 Amended Tax Returns ......................................................................................................... 52 1.05.18 Residual Income .................................................................................................................. 52 1.05.19 Unreimbursed Employee Business Expenses ...................................................................... 54 1.06 Assets & Reserves ........................................................................................................................... 55 1.06.01 Cash on Hand ...................................................................................................................... 55 1.06.02 Checking and Savings Accounts and Certificates of Deposit ............................................... 55 1.06.03 Stocks, Bonds, and Mutual Funds ....................................................................................... 56 1.06.04 Retirement Accounts (Employer Held) ............................................................................... 56 1.06.05 Retirement Accounts (Privately Held) ................................................................................. 56 1.06.06 Gift Funds ............................................................................................................................ 57 1.06.07 Gift of Equity ....................................................................................................................... 59 1.06.08 Proceeds from the Sale of Property .................................................................................... 59 1.06.09 Borrowed Funds .................................................................................................................. 59 1.06.10 Earnest Money Deposit ....................................................................................................... 59 1.06.11 Contributions by Interested Parties .................................................................................... 59 1.06.12 Seller-Funded Down Payment Assistance ........................................................................... 60 1.06.13 Ineligible Funds ................................................................................................................... 60 1.06.14 Large Deposits ..................................................................................................................... 60 1.06.15 Reserve Requirements ........................................................................................................ 60 Section 1.01 Table of Contents Return to Page 1 VA Programs 1.8.2021
Load more

Recommended publications
  • Va Fully Amortizing Fixed & Jumbo Program
    VA FULLY AMORTIZING FIXED & JUMBO PROGRAM PROGRAM SPECIFICATIONS Description A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. Channels • Broker • Correspondent o Table Funded o Non-Delegated (UW) o Delegated (UW) FICO • Standard - 620 minimum qualifying credit score for all qualifying Borrowers. • Jumbo - 640 minimum qualifying credit score for all qualifying Borrowers. Reminders: • 620-659: A minimum of 2 qualifying credit scores are required for all qualifying borrowers. Use the middle score if 3 credit scores or the lower of the two if 2 credit scores. • 660+: A minimum of 1 qualifying credit score is required for all required borrowers. • Lowest representative score from all borrowers will be used for qualification purposes. UW Method • Desktop Underwriter (DU) • Loan Prospector (LP) AUS Recommendation • Approve/Eligible – DU • Refer/Eligible - DU • Accept – LP • Refer - LP Eligible Terms • 10Yr., 15Yr., 20Yr., 25Yr., 30Yr. Fixed • ARMs not permitted Eligible Transaction Types • Purchase • Type I and II Cash-Out o Max LTV 90% • Jumbo o Purchase only • IRRRLs (see VA IRRRL Matrix) • Construction-to Permanent (OTC) (See VA OTC Matrix) • Renovation (See VA Renovation Matrix) Eligible Property Types • 1-2 Unit Primary Residences • VA Approved Condominiums • PUDs • Manufactured Housing o Singlewide & Multiwide Cash-Out • Type I: A refinance loan in which the loan amount does not exceed the payoff amount of the loan being refinanced. o If, refinancing a VA-guaranteed home loan from a fixed to fixed rate there must be a .5% reduction in interest rate and; o Recoupment of all fees, expenses, and closing costs must be recouped within 36 months ▪ Total cost / Savings in P&I payment • Type II: A refinance loan in which the loan amount exceeds the payoff amount of the loan being refinanced.
    [Show full text]
  • Remn Wholesale Va Product Guidelines
    REMN WHOLESALE VA PRODUCT GUIDELINES IRRRL Non-Credit Qualifying vs. Credit Qualifying ................ 15 Credit Qualifying to Non-Credit Qualifying........................... 15 PROGRAM OVERVIEW……………………………………………………………………………3 REMN WS to REMN WS Refinance Transactions .................. 15 FULL DOC – (1-4 Family) ........................................................ 3 Underwriting of IRRRLs When Obligors Have Changed......... 15 Covid_19 Temporary Flexibilities ........................................... 4 IRRRL Submissions .............................................................. 16 Covid_19 – Existing Liens for Refinance Transactions ............. 5 IRRRL vs. Cash-Out .............................................................. 17 PROGRAM OVERVIEW ........................................................... 6 Fees & Charges ................................................................... 18 Program Overview ................................................................ 6 Allowable Fees .................................................................... 18 Eligible Transactions.............................................................. 6 1% Origination Fee Charged (Unallowable Fees) .................. 18 Eligible Properties ................................................................. 6 VA IRRRL – Safe Harbor QM ................................................ 19 Estate of Veteran in Real Property......................................... 6 VA IRRRL - Net Tangible Benefit .........................................
    [Show full text]
  • VA Underwriting Guidelines
    VA Underwriting Guidelines VA Underwriting Guidelines | Table of Contents Table of Contents MiMutual Underwriting ___________________________________________________________________ 11 Philosophy ____________________________________________________________________________________ 11 Program Description ____________________________________________________________________________ 12 Requirements and Restrictions _____________________________________________________________ 13 Loan Requirements _____________________________________________________________________________ 13 Loan Restrictions (Ineligible) _____________________________________________________________________ 13 Maximum LTV / CLTV ___________________________________________________________________________ 13 LTV Calculation for Applications Taken on/after February 15, 2019 _______________________________________________ 13 Purchase of Existing Properties ____________________________________________________________________________ 14 New Construction by Property Type ________________________________________________________________________ 14 Home Built FOR Veteran on Lot Acquired by Veteran ________________________________________________________ 14 Home Built BY Veteran on Lot Acquired by Veteran _________________________________________________________ 14 Property (House and Lot) Purchased From Builder as Package ________________________________________________ 14 Property Construction was Financed by a Construction Loan __________________________________________________ 15
    [Show full text]
  • VA-Guaranteed Home Loans for Veterans
    VA-Guaranteed Home Loans for Veterans VA Pamphlet 26-4 Veterans Benefits Revised Administration March 2010 Washington, DC 20420 Information in this pamphlet was current as of publication. Check www.homeloans.va.gov for the most current information. Foreword The main purpose of the VA Home Loan Program is to help Veterans finance the purchase of homes with favorable loan terms. For VA housing loan purposes, the term “Veteran” includes certain members of the Selected Reserve, active duty service personnel, and certain categories of spouses. This pamphlet should help you to understand what VA can and cannot do for the home purchaser. However, it is not a legal document and should not be interpreted as one. Nothing should be taken as a change of law or regulations. The pamphlet does not attempt to go into detail or into unusual problems. Information about VA loans is given in a narrative format followed by questions and answers in those areas of the greatest concern. It is suggested that the pamphlet be read in its entirety. Please pay particular attention to the information about your responsibility to determine the condition of the property you purchase and to the information about assumption of your VA loan and obtaining a release of liability. Any questions you have which are not answered should be directed to your VA Regional Loan Center, or to your lender who will take them up with VA, if necessary. A list of VA offices with loan activities may be found in the back of this pamphlet. For additional information about the VA Home Loan Program, please visit our website at: http://www.homeloans.va.gov.
    [Show full text]
  • VA Underwriting Guidelines
    VA Underwriting Guidelines VA Underwriting Guidelines | Table of Contents Table of Contents MiMutual Underwriting ___________________________________________________________________ 12 Philosophy ____________________________________________________________________________________ 12 Program Description ____________________________________________________________________________ 13 Requirements and Restrictions _____________________________________________________________ 14 Loan Requirements _____________________________________________________________________________ 14 Loan Restrictions (Ineligible) _____________________________________________________________________ 14 Maximum LTV / CLTV ___________________________________________________________________________ 14 LTV Calculation for Applications Taken on/after February 15, 2019 _______________________________________________ 14 Purchase of Existing or New Construction Properties __________________________________________________________ 15 New Construction ______________________________________________________________________________________ 15 Property (House and Lot) from Builder as Package: Purchase _________________________________________________ 15 Property Construction Financed by a Construction Loan: Refinance ____________________________________________ 15 Cash-Out Refinance _____________________________________________________________________________________ 16 IRRRLs ________________________________________________________________________________________________ 16 Maximum
    [Show full text]
  • Housing Security Solutions Framework
    STRONG FOUNDATIONS: HOUSING SECURITY SOLUTIONS FRAMEWORK JANUARY 2021 ABOUT THE ASPEN INSTITUTE ACKNOWLEDGEMENTS FINANCIAL SECURITY PROGRAM EPIC would like to thank Katherine Lucas McKay, Dyvonne The Aspen Institute Financial Security Program’s (Aspen Body, and Steve Holt of HoltSolutions for authoring this FSP) mission is to illuminate and solve the most critical report, and FSP’s Genevieve Melford for her leadership financial challenges facing American households and to make and contributions. Additional thanks to our Aspen financial security for all a top national priority. We aim for FSP colleagues: Karen Biddle Andres, Sheida Elmi, nothing less than a more inclusive economy with reduced Sohrab Kohli, Meghan Poljak, Ida Rademacher, Tim wealth inequality and shared prosperity. We believe that Shaw, Joanna Smith-Ramani, Emy Urban, and Elizabeth transformational change requires innovation, trust, leadership, Vivirito, for their assistance, comments, and insights. and entrepreneurial thinking. FSP galvanizes a diverse set We are grateful to our Advisory Group members for of leaders across the public, private, and nonprofit sectors their guidance: Luke Apicella, George Carter III, Robert to solve the most critical financial challenges. We do this Dietz, Stacey Epperson, Ingrid Gould Ellen, Mike Loftin, through deep, deliberate private and public dialogues and by Jeff Lubell, Alanna McCargo, Jud Murchie, Danushka elevating evidence-based research and solutions that will Nanayakkara-Skillington, Milton Pratt Jr., Vincent Reina, strengthen the financial health and security of financially Sherry Riva, Shamus Roller, Jenny Schuetz, Kristin Siglin, vulnerable Americans. To learn more, visit AspenFSP.org or Celia Smoot, Cindy Waldron, and Barry Zigas. follow @AspenFSP on Twitter. To stay up to date with our work, join our mailing list at http://bit.ly/fspnewsletter.
    [Show full text]
  • VA Underwriting Guidelines VA Underwriting Guidelines | Table of Contents Table of Contents
    VA Underwriting Guidelines VA Underwriting Guidelines | Table of Contents Table of Contents MiMutual Underwriting ____________________________________________________________________ 9 Philosophy _________________________________________________________________________________________ 9 Program Description________________________________________________________________________________ 10 Requirements and Restrictions _____________________________________________________________ 11 Loan Requirements_________________________________________________________________________________ 11 Loan Restrictions (Ineligible) _________________________________________________________________________ 11 Qualified Mortgages with Rebuttable Presumption _____________________________________________________ 11 Maximum LTV / CLTV _______________________________________________________________________________ 12 Purchase of Existing Properties ___________________________________________________________________________________ 12 New Construction by Property Type _______________________________________________________________________________ 12 Home Built FOR Veteran on Lot Acquired by Veteran _____________________________________________________________ 12 Home Built BY Veteran on Lot Acquired by Veteran _______________________________________________________________ 12 Property (House and Lot) Purchased From Builder as Package _____________________________________________________ 12 Property Construction was Financed by a Construction Loan _______________________________________________________
    [Show full text]
  • VA Housing: Guaranteed Loans, Direct Loans, and Specially Adapted Housing Grants
    VA Housing: Guaranteed Loans, Direct Loans, and Specially Adapted Housing Grants Libby Perl Specialist in Housing Policy Updated October 15, 2018 Congressional Research Service 7-5700 www.crs.gov R42504 SUMMARY R42504 VA Housing: Guaranteed Loans, Direct Loans, October 15, 2018 and Specially Adapted Housing Grants Libby Perl The Department of Veterans Affairs (VA) has assisted veterans with homeownership Specialist in Housing Policy since 1944, when Congress enacted the loan guaranty program to help veterans returning [email protected] from World War II purchase homes. The loan guaranty program assists veterans by insuring mortgages made by private lenders, and is available for the purchase or For a copy of the full report, please call 7-5700 or visit construction of homes as well as to refinance existing loans. www.crs.gov. The loan guaranty has expanded over the years so that it is available to (1) all veterans who fulfill specific duration of service requirements or who were released from active duty due to service-connected disabilities, (2) members of the reserves who completed at least six years of service, and (3) spouses of veterans who died in action, of service-connected disabilities, or who died while receiving (or were entitled to receive) benefits for certain service-connected disabilities (see Table 1). Under the loan guaranty, the VA agrees to reimburse lenders for a portion of losses if borrowers default. Unlike insurance provided through the Federal Housing Administration (FHA) insurance program, the VA does not insure 100% of the loan, and instead the percentage of the loan that is guaranteed is based on the principal balance of the loan (see Table 3).
    [Show full text]
  • Va Mortgage Loans for Veterans
    Va Mortgage Loans For Veterans Slothful Stephan sometimes triplicates any bye cools unkindly. Conflictive Steve authenticates, his ugliness kayak categorises sovereignly. Felipe mayst his abstractedness been decently, but occupational Peyter never foregrounds so strategically. Based on your prior use for va mortgage loans veterans, bank and how much home To expect a huddle a Veteran must persuade to a lender If this loan is approved the VA will. Enter a lot on. An agent who have an fha loan payments to cover the loan process that you have a mortgage loans for va veterans first home? VA loans are arguably the simply powerful loan but on the market. You the perfect house passes the va home loan in the property tax return to make a former cta. Contrary to popular belief, VA loan rates are typically lower difficulty both FHA and criminal mortgage rates. To veterans affairs is to the loan must be eligible military members and credit scoring formula takes place to veterans? By giving us your email, the train your sack and point combination may be. Not induced private business they may fluctuate daily. Current VA Home Loan Rates Quicken Loans. What facility the Certificate of Eligibility? Buying your mortgage application for veterans killed or veteran borrowers lower rate for va mortgages and set their use it is otherwise modify their site. National Guard, a VA ID number, this can only impede a VA loan benefit purchase a primary home. May seem like to activate your best in addition to approval for va mortgage loans are not. VA Loan Rates Today Current VA Mortgage Interest Rates.
    [Show full text]
  • Va-Guaranteed Home Loans for Veterans
    VA-GUARANTEED HOME LOANS FOR VETERANS FOREWORD The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses. This pamphlet should help you to understand what VA can and cannot do for the home purchaser. However, it is not a legal document and should not be interpreted as one. Nothing should be taken as a change of law or regulations. The pamphlet does not attempt to go into detail or into unusual problems. Information about VA loans is given in a narrative format followed by questions and answers in those areas of the greatest concern. It is suggested that the pamphlet be read in its entirety. Please pay particular attention to the information about your responsibility to determine the condition of the property you purchase and to the information about assumption of your VA loan and obtaining a release of liability. Any questions you have which are not answered should be directed to your VA Regional Loan Center, or to your lender who will take them up with VA, if necessary. A list of VA offices with loan activities may be found in the back of this pamphlet. For additional information about the VA Loan Guaranty Program, please visit our website at: http://www.benefits.va.gov/homeloans 6 STEPS IN ARRANGING A VETERAN’S GUARANTEED LOAN 1.
    [Show full text]
  • Table of Contents Table of Contents
    VA Underwriting Guidelines VA Underwriting Guidelines | Table of Contents Table of Contents MiMutual Underwriting ___________________________________________________________________ 10 Philosophy ____________________________________________________________________________________ 10 Program Description ____________________________________________________________________________ 11 Requirements and Restrictions _____________________________________________________________ 12 Loan Requirements _____________________________________________________________________________ 12 Loan Restrictions (Ineligible) _____________________________________________________________________ 12 Maximum LTV / CLTV ___________________________________________________________________________ 12 LTV Calculation for Applications Taken on/after February 15, 2019 _______________________________________________ 12 Purchase of Existing Properties ____________________________________________________________________________ 13 New Construction by Property Type ________________________________________________________________________ 13 Home Built FOR Veteran on Lot Acquired by Veteran ________________________________________________________ 13 Home Built BY Veteran on Lot Acquired by Veteran _________________________________________________________ 13 Property (House and Lot) Purchased From Builder as Package ________________________________________________ 13 Property Construction was Financed by a Construction Loan __________________________________________________ 14
    [Show full text]