VATRAININGPOWERPT
VATRAININGPOWERPT
VATRAININGPOWERPT
CT FAIRFIELD $ 556,250.00
MA BARNSTABLE $ 441,250.00
MA BRISTOL $ 463,750.00
MA DUKES $ 736,250.00
MA ESSEX, MIDDLESEX, NORFOLK, $ 506,250.00
PLYMOUTH & SUFFOLK
MA NANTUCKET $1,094,625.00
• Served less than the required time at the convenience of the military
Currently or previously served in support 90 days Issue the COE in compliance with full time
of a war time operation, i.e. Noble Eagle active duty service personnel-the chart
under Title 10 above. Use a green certificate, not code
11
Other Loans
Type of Loan Percentage for Either Type of Veteran
7. Debt to Income Ratio (2) + (3) divided by (1) (ideal 41%) _________%
Loan Analysis Worksheet –
Form 26-6393
This is where everything comes together. There are six sections as follows:
1. Loan Data
2. Borrower’s Personal and Financial Status
3. Estimated Monthly Shelter Expenses
4. Debts and Obligations
5. Monthly Income and Deductions
6. Disposition of Application and Underwriter Certification.
Sections A and B
• Section A: Loan Data
• Section B: Borrower’s Personal and Financial Status
Sections C and D
• Section C: Estimated Monthly Shelter Expense.
• Use monthly P&I, taxes and insurance, any HOA dues, and Maintenance and
Utilities amount of $0.14 per square foot.
Section D: Debts and Obligations
• Add child care expense
• Need child care letter in file, if applicable.
Loan Analysis Worksheet
Section E: Monthly Income and Obligations
• Compute federal and state income taxes and deductions, either with charts (
http://www.vba.va.gov/ro/manchester/lgymain/lp/loanprocessing.htm State Tax
Charts) or online with www.paycheckcity.com
• Determine the appropriate deductions for
• Social Security/Medicare which is 7.65% of gross monthly income up to $106,800 per
individual per year
• Do not use deductions on pay stubs, use actual number of dependents, i.e. married
couple with 2 children is 4 exemptions.
• Add non-taxable income. (Do not gross up non-taxable income here).
• Total Income, Lines 37-39
• Subtract Obligations, Line 40 in Section D, to compute Total Net Effective Income,
Line 41.
• Subtract Estimated Monthly Shelter Expense from Section D
• (include maintenance & utility) to compute Balance Available for
• Family Support, Line 43. fill in Guideline from Residual Income Chart.
• Compute Ratio by adding Lines 15-18 (excluding maintenance & utilities), plus Line
20 & Line 40 and then divide the sums of Lines 31 and 38. You can gross up Line 38
to calculate the ratio.
Compensating Factors
Compensating factors include, but are not limited to:
• Absence of the above positive findings does not provide a basis for
denying a loan application. Manual underwriting permitted.
State Counties
Connecticut Required in all counties.
Maine Not required in any county.
Massachusetts Required in all counties
New Hampshire Required in the counties of Belknap,
Cheshire, Hillsborough, Merrimack,
Rockingham, Strafford, & Sullivan only.
New York Required in all counties south of
Broome, Delaware, Greene, & Columbia.
Pest Inspections must be within 90 days of closing. If treatment is required, the date
of treatment may count towards the 90 days. Cannot be paid by the veteran
VA Loans
Rate/Term & Cash Out Refi
Loan Amount 100% of NOV plus funding fee and up to $6,000 for EEI with full entitlement
1. Appraised Value $
2. Appraised Value x $75% $
3. Entitlement ($36,000 max) $
4. Total of Lines 2 + 3 $
5. Appraised Value x 100% $
6. Base Loan Amount (lesser of 4 or 5) $
7. *Add VA Funding Fee $
8..Add EEI $
9. Final Loan Amount (total of 6,7 & 8) $
(Round down and cannot exceed $417,000)
*VA Funding Fee is calculated on base loan amount as follows unless veteran is exempt:
a) Regular Military: 2.15% first time use; 3.3% subsequent use.
b) Reservist/National Guard: 2.4% first time use; 3.3% subsequent use.
10. GNMA Coverage $
Equity (Line 1 minus Line 6) + Entitlement (Line 3)
divided by Appraised Value = VA Guaranty**
** VA Guaranty must be at least 25% to be eligible
IRRRL
(Interest Rate Reduction Refinance)
• Loan limit is $417,000 unless in a designated area
• Interest Rate – Must be lower than rate on current VA loan, except
ARM to Fixed.
• Term – Existing VA loan term plus 10 years, not to exceed 30 years.
• Payment – The P&I must be less than the P&I on the current loan
unless: the IRRRL is refinancing an ARM, or the term of the IRRRL
is shorter than the term of the current loan, or Energy Efficiency
improvements are included in the IRRRL.
• If the PITI increases by 20% or more, Veteran must credit qualify.
• Credit – Loan must be current. Credit Report required. Must have
rating on current mortgage. Any derogatory credit since loan
origination will be previewed by underwriting to determine
acceptability.
• If the loan is delinquent, it must be sent to VA for underwriting
IRRRL Continued
• Documentation requirements:
• NO Appraisal
• Prior Loan Validation required. Order through TAS.
• Rate Reduction Refinancing Worksheet, VA 26-8923
• VA Benefits Form (if applicable) VA 26-8937
• Initial Loan Application & Addendum signed by borrower and LO.
• VA Old versus New worksheet
• Mortgage Rating
• Copy of Note & Deed on Existing Loan
• Copy of payoff demand from Title
• Preliminary Title Report
• Veteran’s Nearest Living Relative (Name, Address, Phone Number
and Relationship). (Or completed on Form 26-1820)
Refinance Comparison
Regular Refinance IRRRL
(Cash-out Refinance) VA Streamline Refinance
OK for automatic processing? Yes, automatic lenders Yes, all lenders, unless existing VA
loan is 30 + days past due
Jumbos
Loans > max loan limit to $1MM is permitted subject to the following:
When automated underwriting is involved, follow the feedback sheet for credit,
income and asset requirements.
Lender's cover letter with VA case number and person to contact (optional)
VA Loan Summary Sheet, VA Form 26-0286, fully completed, NOTE the form has been revised
POST CLOSING go to http://www.va.gov/vaforms/ to obtain the latest copy
Certificate of Eligibility or ACE - Check SSN versus credit report, need active duty certification on
VA
Form 26-1820 if box is checked.
Funding Fee Receipt or proof that the veteran is exempt POST CLOSING
Loan Analysis, VA Form 6393 - Must have CAIVRS data, be completed and signed.
Report and Certification of Loan Disbursement, VA Form 26-1820, check for completeness,
signatures, property address, check occupancy cert., active duty certification, if applicable, and
POA. POST CLOSING
Basic Lender Certification
Automated Underwriting? Need the complete/latest feedback sheet; check to assure the data is
up to date and accurate
Verification of VA Benefits, VA Form 26-8937 if needed
HUD Settlement Statement - Check for allowable fees, seller concessions or cash back allowed?
POST CLOSING
Requirements of NOV (termite report, water analysis, repairs, etc.)
Request for waiver of late reporting, reason for delay and certification the loan is current, if not
reported within 60 days from the closing date POST CLOSING
VA Forms and Disclosures Checklist
Interest Rate and Discount Disclosure Statement
Counseling Checklist for Military Homebuyers, VA Form 26-0592, for active duty applicants.
Uniform Residential Loan Application with VA Form 26-1802a - make sure signed by all parties
and
notes the final terms of the loan. Check 1802a for signatures, final terms & items 23 & 25.
Credit Reports) - All credit reports, SS numbers, credit explanation needed?
VOM or Rental Verification Form or cancelled rent checks (front & back) covering the previous 12
months if not on credit report.
Verifications) of Employment Form- cover past two years, compare YTD earnings with current
wages. If stable income may use alternative docs; 1) telephone certification from employer 2)
paystubs covering 30 days 3) past 2 years W-2’s
Pay-stubs - Examine for deductions such as loan allotments or garnishments. If military
personnel, Leave and Earnings Statement (Examine for ETS date, advance pay/debts & assure
BAH is for the proper area.)
Additional income - VA compensation, retirement pay, SS income, child support
Self-Employed Borrowers - Two years signed tax returns, YTD profit & loss statement and
balance sheet
Verifications of Deposit Form- Should show past two months average balance and document
sufficient funds to close. Alt docs-2 months bank statements are also acceptable. Support large
increases with source and look for overdrafts, etc.
Purchase and Sales Agreement with the VA option/escape clause
Blanket Signature Authorization Form if applicable.
Children care expenses must be considered and documented
Copy of the appraisal and NOV
ARM Disclosure, if needed
VA Forms and Disclosures Checklist
CHECKLIST FOR AUDIT PACKAGES OF AUTOMATIC LOANS – IRRRL GURANTY SUBMISSION
VA LOAN# ______________________________
VETERANS NAME SS# __________________________
___Signed 1003
VA Loan Summary Sheet, VA Form 26-0286 POST CLOSE
**Certificate of Eligibility-benefit should be tied**(A COE or an WebLGY-Prior Loan Validation print
out showing an active loan)
Acknowledgment of Funding Fee or proof the veteran is exempt POST CLOSE
If there is an increase in payment by more than 20% underwriter must certify the veteran qualifies for new loan
*****Interest Rate Reduction Worksheet, VA Form 26-8923-make sure CAIVRS is listed in the note section*****
Report and Certification of Loan Disbursement, VA Form 26-1820 POST CLOSE
Check for completeness, signatures, need waiver for late reporting?, check occupancy certification.
HUD-1 Settlement Statement - Check for allowable fees and charges. Discount points financed cannot be more
than 2%. If subordination recording charge-get a copy of the agreement. Subordination processing is not an
allowable fee. Also if credit report and appraisal listed, a copy must be sent. POST CLOSE
**** Federal Collection Policy Notice, VA Form 26-0503, or 1802a****
Lender certification that the prior VA loan was current at the time of closing for loans POST CLOSE
ARM disclosure if needed
For Priors (IRRRL) any loans where the existing VA backed loan is more than 30 days delinquent:
Explanation for delinquency with documentation to the problem has been resolved.
Credit Report, in file is acceptable
Current pay stub, W-2 and telephone certification of current employment or documentation concerning income
CAIVRS
– CAIVRS (Credit Alert Interactive Voice Response System) is a HUD maintained
system to determine if the borrower has defaulted on any federally-assisted loan.
– A CAIVRS inquiry must be performed on all borrowers.
– HUD offers online access for CAIVRS to current FHA lenders, and to VA lenders
with registration. https://vip.vba.va.gov (Veterans Information Portal).
– Consider all obligations appearing in CAIVRS when qualifying.
NOTE – The review of these documents takes approximately fourteen days after receipt of all required documentation
Energy Efficient Improvement Loans
(EEIs)
• Eels are loans to cover the cost of making energy efficiency improvements to a
dwelling. Funds for energy efficiency improvements are considered part of the total
loan. The escrow for the work must be made at the time of the purchase or refinance.
Note: The funding fee must be calculated on the full loan amount, including the cost
of the energy efficient improvements.
• If the labor is to be performed by the veteran, the loan increase will be limited to the
amount necessary to pay for materials. See VA Lender’s Handbook, Chapter 7 for
full details.
EXAMPLES OF ENERGY
EFFICIENT IMPROVEMENTS
• Our office is under the direction of William F. Dallmann, Loan Guaranty Officer.
• Staff:
– Anne Keller, Loan Specialist
– Barbara Croman, Loan Specialist
– Gerri Casey, Loan Specialist
– Jimmy Clark, Loan Specialist
– Monique Beaudoin, Loan Production Officer
• www.warms.vba.va.gov/pam26_7.html;
• Direct access to VA Lender’s Handbook
• www.homeloans.va.gov/contact.htm
• Website to E-mail various VA offices
• www.paycheckcity.com/netpaycalc/netpaycalculator.asp
• Paycheck deduction calculator:
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THANK YOU!