VA Refresher April 10, 2013 Presented by Jeff Harmon

Transcription

1 Contents Eligibility... 2 Borrower Eligibility... 3 Co-Borrowers... 3 Certificate of Eligibility (COE)... 3 Obtaining the COE... 3 Analyzing the COE... 4 Entitlement Code... 4 Exempt/Non-Exempt... 4 Charged Entitlement... 5 Restoration of Entitlement... 5 Additional Conditions... 5 Entitlement... 6 Basic Entitlement... 6 Bonus Entitlement... 6 Full Entitlement... 6 Partial Entitlement... 6 Funding Fee... 7 Entering the Funding Fee in Encompass... 8 CAIVRS... 8 Maximum Loan Amount... 9 Conforming Loans... 9 Jumbo Loans... 9 Transactions VA Case# Refinance Cash Out IRRRL Qualifying Ratios Page 1 of 29

2 Non-Borrowing Spouse Residual Income Minimum Requirement Calculating Residual Income Compensating Factors Employment/Income Military Income Non-Taxable Income Property Condos New Construction New Construction Documentation Requirements Encompass Encompass Forms Helpful Websites Image 1 COE Image 2 VA Loan Analysis Image 3 - VA IRRRL Worksheet Image 4 Former Occupancy Certification Image 5a Payroll Tax and Social Security Deductions Image 5b Payroll Tax and Social Security Deductions Image 5c Payroll Tax and Social Security Deductions Image 6 Encompass Loan Summary Image 7 Encompass Loan Analysis Image 8 Encompass - Underwriting VA Summary Image 9 Encompass VA Funding Fee Eligibility Page 2 of 29

3 Borrower Eligibility VA Refresher April 10, 2013 In order to verify a veteran's eligibility for a VA loan, a Certificate of Eligibility (COE) is issued by the Veterans Administration and is evidence that the veteran meets the basic requirements for a VA loan, as determined by the VA. If the veteran is not eligible, the VA will notify the veteran of his or her appeal rights. Co-Borrowers The only eligible co-borrowers are the Veteran s spouse or another Veteran. Note1: When doing a VA loan for two unmarried Veterans, they will both have to have sufficient entitlement, they will both be required to use their entitlement, and the loan will need to be submitted directly to VA for Approval. Note2: Non-Occupant co-borrowers are not allowed. Certificate of Eligibility (COE) Obtaining the COE A Certificate of Eligibility must be obtained by one of the following methods: Through the ACE System In most cases, the COE can be obtained on-line through the Automatic Certificate of Eligibility system. VA Portal/WebLGY/Eligibility/Automatic Certificate of Eligibility However, there are instances in which the ACE system cannot process a COE request, and you will have to go through the VA to obtain it. Directly from the VA The Veteran will need to complete VA Form , the VA COE Request Form. The Veteran should also provide any discharge or separation documents, DD214. To obtain a copy of the DD214 Discharge Papers, the veteran must make request to: National Personnel Records Center Military Personnel Records 9700 Page Avenue St. Louis, MO Page 3 of 29

4 VA Form and the Veterans DD214 must be sent to the Atlanta Regional Loan Center: Atlanta Regional Loan Center Attn: COE PO BOX Decatur, GA (8:00 4:00 EST) The standard response time from the VA for a COE is 10-days. Analyzing the COE Entitlement Code [COE] Entitlement Code Designates 01 World War II 02 Korean War 03 Post-Korean 04 Vietnam War 05 Entitlement Restored 06 Un-remarried Surviving Spouse 07 Spouse of POW/MIA 08 Post World War II 09 Post Vietnam 10 Gulf War 11 Selected Reserves Exempt/Non-Exempt [COE] The FUNDING FEE (FF) field appears near the top of the COE. The exemption status, either EXEMPT, NON EXEMPT, or CONTACT RLC, will appear to the right of this field: EXEMPT status indicates a veteran is exempt from paying the FF. NON EXEMPT status indicates a veteran is not exempt from paying the FF. CONTACT RLC indicates a system-generated determination is not available. Note: Regardless of the new FF status shown on the COE, you must be sure to read any and all statements appearing in the CONDITIONS field, which appears near the middle portion of the COE: For COEs with EXEMPT status, the following CONDITIONS may appear: Funding Fee Veteran is exempt from Funding Fee due to receipt of service-connected disability compensation of $ monthly. Funding Fee Veteran is exempt from Funding Fee due to receipt of service-connected disability compensation. Monthly compensation rate has not been determined to date. Page 4 of 29

5 Funding Fee Please fax a copy of VA Form to the VA Regional Loan Center of jurisdiction. Funding Fee Please have the lender contact VA Regional Loan Center for loan processing. Please fax a copy of VA Form to the RLC of jurisdiction. For COEs with a NON EXEMPT status, the following CONDITIONS may appear: Funding Fee Veteran is not exempt from Funding Fee. Funding Fee Veteran is not exempt from Funding Fee due to receipt of non-service-connected pension. LOAN APPLICATION WILL REQUIRE PRIOR APPROVAL PROCESSING BY VA. For COEs with CONTACT RLC status, the following CONDITION will appear: Funding Fee Please fax a copy of the to the RLC of jurisdiction. Charged Entitlement [COE] The Veteran s basic entitlement may be reduced if a veteran has used entitlement before which has not been restored. The amount of basic entitlement will be displayed near the center of the COE. For example it may say: THIS VETERAN S BASIC ENTITLEMENT IS $. TOTAL ENTITLEMENT CHARGED TO PREVIOUS VA LOANS IS $. Restoration of Entitlement If the Veteran has Entitlement charged to a previous VA loan, and the home securing the VA loan was sold or the mortgage was refinanced, VA must be provided a completed and signed Request for Certificate of Eligibility and a copy of the HUD-1 from the sale/refinance of the other property secured by the previous VA loan and/or the release docs and warranty deed. Upon receipt of these documents, the Veteran can go to a VA office and request the restoration of his/her entitlement, or we can upload the documents to WebLGY and call VA the next day to request the restoration. Additional Conditions [COE] Additional Conditions that the lender and veteran must comply with are listed on the COE, under the Conditions heading. The following table provides the actions a lender should take for each condition, if applicable: Conditions Valid unless discharged or released subsequent to date of this certificate. A certification of continuous active duty as of the date of note is required. Excluded entitlement previously used for VA Loan Identification Number (LIN) as shown herein What to do Ensure the veteran is still on active duty before closing the loan. If the veteran is discharged or released prior to loan closing, request a new eligibility determination from VA. If the entitlement used for the prior loan identified in this condition is needed for the proposed loan, Page 5 of 29

6 is available only for use in connection with the property that secured that loan. Entitlement has been used for manufactured home purposes. Remaining entitlement for additional manufactured home use is: $ [amount]. Not eligible for any loan to purchase a manufactured home unit until veteran disposes of unit purchased with manufactured home loan number VA LIN [number]. Entitlement previously used for VA LIN [number] has been restored without disposal of the property, under provision of 38 U.S.C. 3702b(4). Any future restoration requires disposal of all property obtained with a VA loan. ensure the proposed loan will be secured by the same property as the prior loan. (Cash-out refinance on a prior VA loan.) If the proposed loan involves a manufactured home, adhere to the entitlement limit indicated. If the proposed loan involves a manufactured home, ensure that the veteran has disposed of the unit indicated. This is information for the veteran. The lender need not be concerned if this condition is applicable, as long as the available entitlement shown on the COE is sufficient for the lender s purposes. The Subsequent Use Funding Fee Condition indicates the veteran has used their home loan benefit before, so a higher funding fee is required. Entitlement Basic Entitlement The maximum available entitlement shown on the Certificate of Eligibility is $36,000 with loan amounts up to $144,000. Generally, the maximum loan amount for 100% financing is calculated by multiplying the available entitlement by four. Bonus Entitlement Bonus entitlement up to 25% of the subject property s county limit is available for purchase transactions with loan amounts up to $417,000. This entitlement may only be applied to the guaranty on a loan amount greater than $144,000. Example: For a county with a VA Loan Limit of $417,000, and a loan amount greater than $144,000, the Veterans Entitlement, basic plus bonus, will be $104,250, ($417,000 * 25%). Full Entitlement When a Veteran has full Entitlement, (no entitlement charged on the Veteran s COE), the Veteran is eligible for 100% financing up to the VA loan limit for the subject property s county. Partial Entitlement Page 6 of 29

7 If the veteran previously used entitlement, which has not been restored, available entitlement is reduced by the amount used on the prior loan(s). Example: Veteran s COE reflects $27,500 Entitlement Charged to a previous VA loan. For a loan amount > $144,000: The Veterans entitlement will be 25% of the county limit minus the amount of entitlement charged on the COE. If the VA county limit is $417,000, the Veteran s entitlement, including bonus entitlement, is $104,250. Because the COE reflects $27,500 charged, we must reduce this from the $104,250 to arrive at $76,750 entitlement. (The Veteran would be eligible for a VA purchase at 100% LTV up to a purchase price of $307,000 in this example. The Veteran would need to make a down payment of 25% of any amount over this.) For a loan amount <= $144,000: The maximum entitlement is $36,000. The Veteran s maximum entitlement for the new loan would be $36,000 - $27,500 - $8,500, which will be reflected on the COE. Funding Fee [COE] The Veteran s Certificate of Eligibility (COE) will reflect either Exempt or Non-Exempt. If the COE reflects Exempt, the Veteran is exempt from the Funding Fee. If the COE reflects Non-Exempt, refer to the below Funding Fee Table to determine what the Veteran s Funding Fee will be: Loan Fee Structure for VA-Guaranteed Loans Veteran Reservist/National Guard First Time Use Down-Payment Less than 5 percent* November 18, 2011 through November 21, % 1.65% November 22, 2011 through September 30, % 2.40% At least 5 percent but less than 10 percent November 18, 2011 through November 21, % 1.00% November 22, 2011 through September 30, % 1.75% 10 percent or more November 18, 2011 through November 21, % 0.75% November 22, 2011 through September 30, % 1.50% Second and Subsequent Use Page 7 of 29

8 Down-Payment Less than 5 percent* November 18, 2011 through November 21, % 2.80% November 22, 2011 through September 30, % 3.30% At least 5 percent but less than 10 percent November 18, 2011 through November 21, % 1.00% November 22, 2011 through September 30, % 1.75% 10 percent or more November 18, 2011 through November 21, % 0.75% November 22, 2011 through September 30, % 1.5% Refinance Loans Interest Rate Reduction 0.50% 0.50% Other Assumptions 0.50% 0.50% Service-connected Veterans 0.00% 0.00% *Includes Cash-Out Refinance loans The Funding Fee may be financed into the loan, provided the total loan amount does not exceed the VA County Loan Limit, or the Funding Fee may be paid in cash. (The VA Funding Fee may not be partially financed and partially paid in cash.) Note: If the COE does not reflect if the Veteran is Exempt/Non-Exempt, the Veteran must complete and sign VA Form (Verification of VA Benefit Related Indebtedness), and you must submit the form to VA to verify if the Veteran is/is not exempt from the Funding Fee. (If the Veteran is receiving VA Benefits, they will often appear on the borrower s bank statements.) Entering the Funding Fee in Encompass After reviewing the COE and the above table, you ll need to enter the appropriate VA Funding Fee percentage in Encompass. You ll need to open the Mortgage Insurance Pop-Up screen from the 1003 Page 2. [See Image] CAIVRS The Credit Alert Interactive Voice Response System (CAIVRS) is an automated communication link via FHA Connection that indicates whether or not the borrower is presently delinquent or has had a default claim paid in the last three years through any government loan program.the CAIVRS database contains records from the Department of Housing and Urban Development (HUD), Department of Education (ED), the Department of Justice (DOJ), the Small Business Administration (SBA), the United States Department of Agriculture (USDA), the Federal Deposit Insurance Corporation (FDIC) and the Department of Veterans' Affairs (VA). The CAIVRS clearance must be obtained for all borrowers on the loan. The CAIVRS message should indicate "No Claims or Defaults" and a CAIVRS Code will be issued. Page 8 of 29

9 If the borrower is delinquent on any federal debt, including student loans, tax liens, etc., the borrower is not eligible until the account is brought current, paid in full or resolved with a satisfactory repayment plan made between the federal agency and the borrower. Written verification of the repayment plan and evidence of a satisfactory 12-month payment history is required. (This is in addition to the requirement to receive clear CAIVRS.) The borrower s CAIVRS Numbers should be entered on the VA Loan Summary Form in Encompass. Maximum Loan Amount Conforming Loans The maximum total loan amount for 100% financing is the lesser of the VA County Loan Limit or four times the borrower s available Entitlement. Note: LTV/CLTV is calculated using the base loan amount, but the maximum mortgage amount is calculated using the total loan amount. Jumbo Loans We can exceed VA s county limit as long as the borrower has 25% Guarantee, between entitlement and down payment, (30% for US Bank loans exceeding $650,000). Example The VA Loan limit for County X is $417,000. The borrower s minimum down payment would be 25% of the amount of the purchase price over $417,000: Purchase Price: $500,000 County Limit: $417,000 Purchase price is $83,000 over the county limit. Assuming the borrower has full entitlement, the borrower will need a down payment of $20,750 (25% of the amount over the county limit). (Note: If the borrower was not exempt from the funding fee, the required down payment would be this amount plus the amount of the funding fee. In this example, the maximum total loan amount will be $479,250 based on a purchase price of $500,000 in County X, and full entitlement. Note: US Bank will require 30% entitlement for loan amounts exceeding $650,000. Remember, gift funds are not allowed on VA Jumbo loans, (loans exceeding the county limit). Page 9 of 29

10 Transactions VA Case# All Purchase and Cash out Refinance loans should be ordered as LAPP (Lender Appraisal Processing Program) cases. For IRRRLs order a Single Case Status. Remember to upload the VA form or the Single Case Status (IRRRL) to Encompass. Note: Double check the spelling of the Veteran s name and the subject property address before submitting the Case#/Appraisal request. Refinance VA does not have a R/T Refinance. VA has an IRRRL, (VA to VA Streamline), and a C/O Refinance. Cash Out VA does allow a C/O Refinance to 100% when the loan meets R/T requirements, but our investors have capped us at 90% on non-irrrl VA Refinances. IRRRL An Interest Rate Reduction Refinance Loan (IRRRL) is a VA to VA streamline refinance. All VA IRRRL s are manually underwritten and must not be run through DU/LP. Maximum Loan Amount Complete VA Form IRRRL Worksheet to determine the maximum loan amount. Entitlement on an IRRRL IRRRL s are not subject to entitlement rules as VA will automatically issue a 25% guaranty on any eligible IRRRL transaction. Benefit to the Veteran An IRRRL must bear a lower interest rate than the loan it is refinancing unless the loan it is refinancing is an ARM. The principal and interest payment on an IRRRL must be less than the principal and interest payment on the loan being refinanced unless one of the following exceptions applies: the IRRRL is refinancing an ARM, Page 10 of 29

11 term of the IRRRL is shorter than the term of the loan being refinanced, or energy efficiency improvements are included in the IRRRL. A significant increase in the veteran s monthly payment may occur with any of these three exceptions, especially if combined with one or more of the following: financing of closing costs, financing of up to two discount points, financing of the funding fee, and/or higher interest rate when an ARM is being refinanced. If the monthly payment (PITI) increases by 20 percent or more, the Veteran must credit/ratio qualify. The underwriter must: determine that the veteran qualifies for the new payment from an underwriting standpoint; such as, determine whether the borrower can support the proposed shelter expense and other recurring monthly obligations in light of income established as stable and reliable, and include a certification that the veteran qualifies for the new monthly payment which exceeds the previous payment by 20 percent or more. If PITI increases 20% or more the loan may not be sold to PennyMac The maximum loan term is the original term of the VA loan being refinanced plus 10 years, but not to exceed 30 years and 32 days. For example, if the old loan was made with a 15-year term, the term of the new loan cannot exceed 25 years. Occupancy We can do a VA IRRRL on an investment property with Wells Fargo, US Bank (US Bank to US Bank only), and Franklin American. PennyMac will only allow a VA IRRRL on an owner occupied property. Note: The Veteran must certify they previously occupied the property. [Former Occupancy Cert] Documentation VA IRRRL Worksheet Used to calculate maximum loan amount VA Loan Comparison (Old vs. New) Used to show the benefit to the Veteran Appraisal For a 1-unit property, you can order a 2055 Exterior. Page 11 of 29

12 For a 2-4 unit property, you must order a full Conventional appraisal. US Bank - No appraisal required on US Bank to US Bank IRRRL. Anything less than a full appraisal on a non US Bank to US Bank IRRRL and the loan cannot be sold to US Bank. Wells Fargo No appraisal required on Wells Fargo to Wells Fargo IRRRL Note: Do not order a VA Appraisal through the VA Portal. Qualifying Ratios VA s guidelines recommend the borrower s DTI be <= 41%, however, underwriting may approve a loan with higher ratios, but not exceeding 50%, if there are sufficient compensating factors. Note: DU/LP will Refer a loan with DTI exceeding 41%, which will result in the need for a manual underwrite. If a loan is closed on an automatic basis with a ratio greater than 41%, the file must contain a statement justifying the reasons for approval, signed by the underwriter s supervisor, unless residual income exceeds the guideline by at least 20 percent. The statement must list the compensating factors justifying approval of the loan. (See Compensating Factors) Non-Borrowing Spouse In Community Property states, a Veteran s non-borrowing spouse s debts must be included in the Veteran s ratio and residual income calculations. (Community Property States: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin) Residual Income Residual income is the amount of net income remaining (after deduction of debts and obligations, payroll taxes and monthly shelter expenses) to cover family living expenses such as food, health care, clothing, and gasoline. Minimum Requirement The minimum requirement for residual income is determined by the VA loan amount, the region the subject property is in, and the Veteran s family size. Use the below table to determine the minimum residual income required by VA: Residual Income by Region Page 12 of 29

13 Loan Amounts $79,999 and below Family Size Northeast Midwest South West 1 $390 $382 $382 $425 2 $654 $641 $641 $713 3 $768 $772 $772 $859 4 $888 $868 $868 $967 5 $921 $902 $902 $1,004 Over 5 Add $75 for each additional member up to a family of seven. Residual Income by Region Loan Amounts $80,000 and above Family Size Northeast Midwest South West 1 $450 $441 $441 $491 2 $755 $738 $738 $823 3 $909 $889 $889 $990 4 $1,025 $1,003 $1,003 $1,117 5 $1,062 $1,039 $1,039 $1,158 5 or more Add $75 for each additional member up to a family of seven. Key Geographic Regions Northeast Midwest South West Connecticut Maine Massachusetts New Hampshire New Jersey New York Pennsylvania Rhode Island Vermont Illinois Indiana Iowa Kansas Michigan Minnesota Missouri Nebraska North Dakota Ohio South Dakota Wisconsin Alabama Arkansas Delaware District of Columbia Florida Georgia Kentucky Louisiana Maryland Mississippi North Carolina Oklahoma South Carolina Tennessee Texas Virginia West Virginia Alaska Arizona California Colorado Hawaii Idaho Montana Nevada New Mexico Oregon Utah Washington Wyoming Enter the appropriate residual income amount from the above tables in the guideline box on line 43 of the VA Loan Analysis. Page 13 of 29

14 The borrower's actual residual income should meet or exceed the figure entered in the "guideline" box. The VA's minimum residual income requirements will be used as a guide and will not automatically trigger approval or rejection of a loan. Underwriting will consider residual income in conjunction with all credit factors. However, an inadequate residual income alone can be a basis for disapproving a loan. Calculating Residual Income Income used in the Residual Income Calculation The borrower s total gross income, without grossing up non-taxable income will be used to calculate the borrower s residual income. Monthly Shelter Expense [Loan Analysis] The monthly shelter expenses include the mortgage payment principal and interest, real estate taxes, hazard insurance, special assessments, maintenance and utilities, homeowners' association dues, condominium fees, etc. These expenses must be accurately estimated as they are deducted from the monthly income to arrive at the balance available for family support. The VA allowance for the estimate of monthly utilities and maintenance is 14 cents per square foot. Multiply the total square footage of the home (including both heated and unheated areas) times 14 cents to determine the monthly utilities and maintenance expense. Debts and Obligations [Loan Analysis] All known debts and obligations of the veteran and spouse, including any alimony and/or child support payments must be listed on the Loan Analysis. Installment Debts with less than 10 months remaining must be listed but do not have to be included in the total debts and obligations unless the payment would cause a severe impact on the family's resources for any period of time. Job related expenses include any costs for child care, union dues, 2106 expenses, significant commuting costs and any other direct or incidental costs associated with the veteran's (or spouse's) employment. A check mark must be placed in the job related expenses column. Payroll Tax and Social Security Deductions [Loan Analysis] [Paycheckcity 1] [Paycheckcity 2] [Paycheckcity 3] Determine the appropriate payroll deductions for Federal, State and local income taxes and Social Security/Medicare and enter in Lines of the VA Loan Analysis. There are several websites, such as that will calculate payroll deductions. Click on Salary Paycheck Calculator under Standard Edition then complete the form and click the calculate button at the bottom. Page 14 of 29

15 The page reflecting the payroll deductions should be printed and uploaded to the efolder. Final Calculation [Loan Analysis] +/- Residual Income Calculation + Total Net Income (VA Loan Analysis Line 39) (This is the Total Gross Taxable income payroll tax and social security deductions + non-taxable income (not grossed up).) - Applicable debts and obligations (VA Loan Analysis Line 40) - Shelter expense (VA Loan Analysis Line 21/42) Compensating Factors The following list is examples of compensating factors. This is not an all inclusive list. Remember, each loan is different, and in some cases compensating factors may not be sufficient to overcome certain risk factors. Examples of Compensating Factors Residual Income exceeds requirement by 20% Similar current housing payment (12-24 months) Conservative use of consumer credit Minimal consumer debt Long-term employment Significant liquid assets (3+ months) Sizable down payment The existence of equity in refinancing loans Little or no increase in shelter expense Low debt-to-income ratio Additional income not being used to qualify Note: Compensating factors CANNOT be used to offset unsatisfactory credit. Employment/Income Military Income All military income should be entered as Other income, breaking out the various types of income, (base/bah/bas). Non-Taxable Income Non-Taxable income may be grossed up by up to the borrower s tax rate, but not more than 20%. Tax returns should be used to document the income being grossed up is non-taxable. Encompass Entry Page 15 of 29

16 To get the debt ratio and residual income calculations correct on the VA Loan Analysis, calculate increase in effective income when grossing up the borrower s non-taxable income and enter it in Encompass as a separate income source. Example: Borrower s non-taxable income is $1,000. (This will be entered as the correct type of income.) If the income is grossed up 20%, the increase in effective income will be $200. (Enter the $200 as Other Income on page 2 of the 1003 and label it as Grossed up Non-Taxable Income 20%.) Now enter the Grossed up Non-Taxable Income, $ in this example, to line 36 on the VA Loan Analysis as a deduction. This will exclude the grossed up income from the residual income, as required by VA but still allow the additional income to be included in the borrower s debt ratio. Property Condos Condo projects require VA Approval (Condo Search) New Construction Page 16 of 29

17 Builder must have a VA Builder ID (Builder Search) New Construction Documentation Requirements In addition to the VA Builder ID#, the following New Construction Requirements must be obtained: 1-Year Warranty (VA ) 2-10 Warranty Soil treatment guarantee (NPCA-99b) Lead Content Certification (Attached) - Builder's certification, which identifies the subject property, stating the solders and flux used in construction did not contain more than 0.2 percent lead and the pipes and pipe fittings used did not contain more than 8.0 percent lead. VA Energy Efficient Construction Certification (Attached) - Builder's certification, which identifies subject property, stating subject property was constructed to meet the energy conservation standards of the Council of American Building Officials (CABO) 1992 Model Energy Code (MEC). VA Not Inspected Acknowledgement (Attached) - Veteran's written acknowledgement that Veteran is aware that since this property was not inspected during construction by VA, VA assistance with construction complaints will be limited to defects in equipment, material, and workmanship reported during the one-year builder's warranty period, or VA will not intercede on Veteran's behalf in the processing of any construction complaints. Certificate of Occupancy Encompass Encompass Forms The VA Loan Summary, Underwriting VA Summary, and VA Loan Analysis forms should be as complete as possible prior to submission to Underwriting. Nearest Living Relative Info (Check relative s address to insure it is a relative not living with the Veteran.) Helpful Websites (VA Lender Handbook) (VA Circulars) (VA Portal) (Paycheck Calculator) (Obtaining DD14) (Condo Search) (Builder Search) Page 17 of 29

18 Image 1 COE [Entitlement Code] [Exempt/Non-Exempt] [Charged Entitlement] [Conditions] Page 18 of 29

19 Image 2 VA Loan Analysis [Monthly Shelter Expense] [Debts and Obligations] [Final Calculation] [Payroll Tax and Social Security Deductions] Page 19 of 29

20 Image 3 - VA IRRRL Worksheet [Return] Page 20 of 29

21 Image 4 Former Occupancy Certification [Return] Former Occupancy Certification To Whom It May Concern, RE: Subject Street Address City State Zip Code I/We hereby certify that I/we previously occupied the subject property as our home in compliance with VA primary home occupancy requirements. Veteran (Borrower) Date Veteran (Borrower) Date Page 21 of 29

22 Image 5a Payroll Tax and Social Security Deductions 1 [Payroll Tax and Social Security Deductions] [Loan Analysis] [Paycheckcity 1] [Paycheckcity 2] [Paycheckcity 3] Page 22 of 29

23 Image 5b Payroll Tax and Social Security Deductions 2 [Payroll Tax and Social Security Deductions] [Loan Analysis] [Paycheckcity 1] [Paycheckcity 2] [Paycheckcity 3] Page 23 of 29

24 Image 5c Payroll Tax and Social Security Deductions 3 [Payroll Tax and Social Security Deductions] [Loan Analysis] [Paycheckcity 1] [Paycheckcity 2] [Paycheckcity 3] Page 24 of 29

25 Image 6 Encompass Loan Summary [Encompass] Page 25 of 29

26 Image 7 Encompass Loan Analysis [Encompass] Page 26 of 29

27 Page 27 of 29

28 Image 8 Encompass - Underwriting VA Summary [Encompass] Page 28 of 29