VA Loan Training Overviews & Updates June 3, 2015

Transcription

1 VA Loan Training Overviews & Updates June 3, 2015 Choose one of the following audio options: TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. --OR-- TO USE YOUR TELEPHONE: If you prefer to use your phone, you must select "Use Telephone" after joining the webinar and call in using the numbers below. Toll:XXX-XXX-XXXX Access Code:XXX-XXX-XXX Audio PIN: Shown after joining the webinar

2 What s the Highest $0 Down Payment Possible Where You Want to Own a Home in California? Recent Update: 2015 Loan Limits

3 VA does not have a maximum loan amount however the VA county loan limits are used to determine the maximum guaranty by county To view VA s county loan limits go to VA County Loan Limits Counties not identified on the VA loan limit list are limited to $417,000 JMAC limits the maximum loan amount on VA loans to $1,000,000 VA Loan Limits

4 VA Guaranteed loans are made to eligible veterans for the purchase or refinance of a home. Active duty military personnel Any veteran who served active duty in the Army, Navy, Air Force, Marine Corp or Coast Guard and was discharged under conditions other than dishonorable Reservists or National Guard with 6 years of service Unmarried surviving spouse of an eligible service member who died as a result of service or serviced-related injuries What is A VA Guaranteed Loan

5 The VA entitlement is the amount the VA will guaranty the lender against loss. The entitlement is based on 25% of the total loan amount (including the funding fee, if financed). The total loan amount, including the funding fee can never exceed the VA county loan limit without a down payment from the veteran. The Certificate of Entitlement (COE), issued by the VA, provides the amount of the veteran s entitlement. The entitlement is available for all veterans. The basic entitlement is $36,000 for loan amounts $144,000. Bonus entitlement is available for loan amounts > $144,000 up to conforming loan limits. Understanding VA Entitlement

6 The Certificate of Entitlement (COE), issued by the VA, provides the amount of the veteran s entitlement. The entitlement can be affected if the veteran has used it before and whether or not the entitlement has been restored There is no limit on the number of times the entitlement may be used The entitlement can be restored when a prior VA loan obtained by the veteran is paid in full, or An eligible veteran assumes the outstanding loan on a property and substitutes their entitlement for the same amount originally used on the loan. Understanding VA Entitlement (cont)

7 No Down Payment Required *up to county limit No Monthly Mortgage Insurance Flexible Credit Standards Ability To Finance Funding Fee Seller Concession: up to 4% Fully Assumable No Pre-pay Penalty VA Assistance To Borrowers In Default VA Loan Benefits

8 Purchase 100% LTV/CLTV *up to county limit Cash-out refinance up to 100% 1-4 unit primary residence Single family residence, PUDs and condominiums in VA approved projects DTI per DU with 620 credit score Gift funds, grants and DPA Funds VA Program Highlights

9 VA loans require a VA funding fee which is paid directly to VA Funding fee can be financed into the loan amount Veteran may be exempt from the funding fee; the COE will identify if veteran is exempt. The base loan amount plus the financed funding fee cannot exceed the conforming loan limit or the VA county limit or a down payment will be required to ensure a 25% guaranty The funding fee is calculated using the base loan amount The funding fee can be paid by: Property seller Realtor Broker Lender VA Funding Fee

10 The Funding Fee is based on type of service, use and down payment as detailed in the chart below: VA Funding Fee (Cont)

11 VA has specific requirements regarding fees to the borrower. VA requirements are: 1% origination fee based on the total loan amount. Unallowable fees cannot be charged, OR 1 % of the unallowable fees based on the total loan amount. An origination fee cannot be charged, OR 1% blend of origination fee and unallowable fees based on the total loan amount. Combined fees cannot exceed 1% of the total loan amount. Fees and Charges

12 The following fees are unallowable and cannot be charged to the veteran if a 1% origination fee is charged: Lender s Inspection Lender s Appraisal Closing/Settlement Fee Doc Prep Fees Conveyance Fee Underwriting Fee Pest Inspection Fee Well/Septic Fee Escrow Fees Notary Fee Commitment Fee Trustee Fee Interest Rate Lock Fee Postage/Mail Charges Amortization Schedule Tax Service Fee Attorney s Services other than title work Loan Application/Processing Fee Fees for preparing Truth-in-Lending Prepayment Penalties (refinance) Any other fee not listed as allowable by VA Fees to Loan Brokers, Finders or other 3rd party fees Fees and Charges (Cont)

13 The following are allowable closing costs: Loan Origination Fee Reasonable Discount Points Appraisal Fee/Compliance Inspection Credit Report Fee (actual) Title Examination/Title Insurance Fees Recording Fes & Taxes Prorated Taxes Hazard Insurance Flood Insurance Flood Determination Federal Express/Express Mail (Refi only) Closing Protection Letter VA Funding Fee MERS Registration Survey/Plot Plan Fees and Charges (Cont)

14 WEBLGY = Web-based Loan Guaranty Like FHA Connection but for VA Loans WEBLGY features: User Registration Order Case Number Order Appraisals Request, Search and/or Print COE (Certificate of Eligibility) View Loan Status and History And many other lender s functions What is A VA WEBLGY?

15 How can a COE be obtained? Under WEBLGY determination within seconds What if COE cannot be determined by WEBLGY? Select Electronic Application to complete a request for a COE Mail VA Form , Request for COE and evidence of service to VA: VA Loan Eligibility Center PO Box Decatur, GA Certificate of Eligibility (COE)

16 Veterans Still On Active Duty Statement of Service Signed & Dated by Commanding Officer: Service Member s name Date of Birth SSN and/or Service Number Enlistment Date Contain the phrase No Time Lost (if applicable), or list any Time Lost If the service member is in the Reserves or National Guard, indicate if he/she is serving under Title 10 or Title 32. Documentation needed for COE

17 Discharged Veterans (Regular Military) Provide Certificate of Release or Discharge From Active Duty If DD 214 not available, contact: Ntional Personnel Records Center 1 Archives Drive St. Louis, MO Documentation needed for COE

18 Current Reserve/Guard Members: Statement of Service Signed & Dated by Commanding Officer: Veteran s full name SSN Entry Date of Applicant s Reserve/Guard Duty Contain the phrase No Time Lost (if applicable), or list any Time Lost Note: The statement must clearly indicate that the applicant is and active reservist and not in a control group (inactive status) Documentation needed for COE

19 Discharged Reserve/Guard Members: Provide Points Statement to reflect 6 years of participation Provide evidence of honorable discharge Branch Type of Form Telephone Air Force Reserve Air National Guard Record of Service AF526, Points Sumary Sheet NGB Form 22, Report of Separation & Record Svc (800) Army Reserve Army Nat l Guard DARP Form 249-2E or ARPC Form 606 Chronological Statement of Retirement Points NGB Form 22, Report of Separation & Record Svc (800) Navy Reserve NRPC , Annual Retirement Point Record (866) USMC Reserve NAVMC 798, Reserve Retirement Credit Report (800) Coast Guard Reserve CG 4175, USCG Reserve Retirement Points Stmt (866) Documentation needed for COE

20 The Loan Limit: 100% of Notice of Value (NOV) Plus (+) The Funding Fee Plus (+) The Cost Of Any Energy Efficient Improvements up to $6K Must pay off existing lien(s) Itemization of the debts paid off by loan proceeds is required Veteran can receive cash proceeds from the loan for an acceptable purpose approved by the lender. IMPORTANT NOTE: Property must have a lien (Free & Clear is not allowed) VA Cash Out Refinance

21 Interest rate of the new loan must be LOWER than the previous loan, unless refinance an ARM to a fixed rate. P&I must be less than previous loan P&I, UNLESS ARM is being refinanced by a fixed rate VA IRRRL The term of the IRRRL is shorter than the term of previous VA loan OR, Energy Efficient Improvements are included in the IRRRL. Include all costs in the new loan, including the VA funding fee and any allowable fees and charges No credit info or underwriting is required, UNLESS the loan is 30 days or more past due or monthly payment (PITI) will increase 20% or more. Note: A borrower with a recent Chapter 13 BK may need approval of the trustee for the new loan. The veteran or spouse must certify that he or she previously occupy the property as his or her home. Max term = existing term + 10 years, not to exceed 30 years & 32 days. VA IRRRL AVM is Required for IRRRL *JMAC s Overlay

22 The loan being refinanced was originated at least 6 months before the new loan s closing date The veteran has not been more than 30 days past due during the 6 months preceding the new loan s closing date The recoupment period for all allowable fees and charges financed as part of the loan or paid at closing does not exceed 36 months All other VA requirements for guaranteeing an IRRRL are met VA IRRRL (Qualified Mortgage)

23 Parties On Existing Loan Parties To Be On New Loan Is IRRRL OK? Unmarried Veteran Veteran And New Spouse Yes Veteran And Spouse Divorced Veteran Alone Yes Veteran And Spouse Veteran And Different Spouse Yes Veteran Alone Different Vet w/substituted Entitlement Yes Veteran And Spouse Spouse Alone (Veteran Died) Yes Veteran and Non-Veteran Veteran Alone Yes Veteran And Spouse Divorced Spouse Alone No Unmarried Veteran Spouse Alone (Veteran Died) No Veteran And Spouse Different Spouse Alone (Vet Died) No Veteran And Non-Veteran Non-Veteran Alone No Who Can Obtain an IRRRL? AVM is Required for IRRRL *JMAC s Overlay

24 Judgments: Must be paid off or on an acceptable repayment plan Federal Debts: Must be paid in full or on an acceptable repayment plan Collection Accounts: A borrower with an unacceptable credit history does not become acceptable simply by paying collection accounts. Conversely, A borrower with an overall favorable history might be considered acceptable with an isolated unpaid collection. Chapter 7 BK: 24 months from discharge Chapter 13 BK: 12 satisfactory payment history & Approval from court Foreclosure: 2 years from settlement DIL and Short Sale: 2 years from settlement Divorce Situation: Disregard Derogs belong to ex-spouse per final decree. Credit Min Fico: 620 *JMAC s Overlay

25 Non-purchasing Spouse s credit report is required Non-purchasing Spouse s debts will be counted Non-purchasing Spouse s derogatory credit may have adverse effect on the loan decision. Credit (Non-purchasing Spouse) Min Fico: 620 *JMAC s Overlay

26 VA Addendum (HUD A/VA a) page 1-2 only. VA Rights of VA Loan Borrowers (VA ) VA Certificate of Eligibility VA Request for Certificate of Eligibility (VA ) VA Verification of Benefits (VA ) VA Request for Certificate of Veteran Status (VA A) VA Counseling Checklist (VA ) For Active Military Only VA Nearest Living Relative Form VA Childcare Statement VA Debt Questionnaire (VA ) VA Federal Collection Policy Notice (VA ) Veteran s DD 214 VA IRRRL Loan Comparison Worksheet/Rate Reduction Certification, if App Active Duty/Reservist/National Guard Certification VA IRRRL Interest Rate Reduction Refinance Loan Worksheet VA Amendment to Contract (escape clause, for purchase transactions only) Alive and Well Certification (If using a POA) VA forms & Disclosures

27 INITIAL Addendum to URLA A / VA A (PAGE 2) Sign & date by borrower Sign & date by borrower Must be fully completed Check appropriate boxes At Application Must be signed and dated by borrower(s) both places Sign & date by borrower Sign & date by borrower

28 VA Rights of VA Loan Borrowers At Application Must be signed and dated by borrower(s)

29 Certificate of Eligibility

30 VA Request for a certificate of Eligibility At Application Must be signed and dated by borrower(s)

31 VA Verification of VA Benefits At Application Must be signed and dated by borrower(s)

32 VA A Request for Certificate of Veteran Status At Application Must be signed and dated by borrower(s)

33 VA VA Counseling Checklist At Application Must be signed and dated by borrower(s) Required for Active Military Only

34 VA Nearest Living Relative Form At Application Must be signed and dated by borrower(s)

35 Child Care Statement At Application, If applicable Must be signed and dated by borrower(s)

36 VA Debt Questionnaire At Application Must be signed and dated by borrower(s)

37 VA Federal Collection Policy Notice At Application Must be signed and dated by borrower(s)

38 DD214 Certificate of Release or Discharge from Active Duty

39 Rate Reduction or IRRRL Loan Comparison Worksheet At Application Must be signed and dated by borrower(s)

40 Active Duty/Reservist/National Guard Certification At Application Must be signed and dated by borrower(s)

41 VA IRRRL Worksheet

42 VA Escape Clause or Amendatory Clause At Contract Must be signed and dated by borrower(s) & Seller(s)

43 Alive and Well Certification If using a POA when the borrower is being deployed. Must be signed and dated by commanding officer at closing

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