Introduction. Eligible Terms and Product Codes. Maximum Loan Amount

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1 VA Introduction Eligible Terms and Product Codes General Requirements This Product Guide outlines policies for Veteran Administration (VA) programs. A VA loan is insured by the U. S. Department of Veterans Affairs which allows the purchase or refinance of a primary residence to a qualified Veteran, Spouse of a Veteran or Unmarried Surviving Spouse of a Veteran. UNIFI Product Codes Term Fixed years Fixed Years 1 1 Amortization terms from months may be entered on product Year Fixed. Maximum Loan Amount If the borrower requests a higher loan amount that exceeds their Entitlement, one dollar for every four dollars borrowed must be provided by the borrower to ensure the 25% guarantee is met. The maximum loan amount for High Cost Counties is determined by individual county limits The individual county limits can be accessed by clicking on the following link: Example: Veteran has full entitlement available and is purchasing a home for $480,000 where the loan limit based on the county and available entitlement limit is $417,000. $480,000 - $417,000 = $63,000 Over Limit $63,000 X 25% = $15,750 Required Down Payment The VA Entitlement Worksheet is a tool to help assist in determining the maximum mortgage loan amount. Minimum Loan Amount VA Funding Fee Note: The county limits do NOT apply to IRRRLs. VA will guarantee 25 percent of the principal balance on an IRRRL, regardless if the loan exceeds the limit for the particular county. In instances where limits decreased, VA will honor the higher limit on a purchase loan provided the sales contract has been fully executed by all parties and the URLA is signed prior to 1/1/14. None The funding fee must be added to the base loan amount. The funding fee can be paid from the following: o o Loan proceeds OR Can be paid by the seller or borrower with cash o If the funding fee is paid by the borrower with cash, the following must be documented: 1

2 o General Requirements Funds must be sourced and seasoned Large deposits must be addressed Any portion of the VA funding fee paid by the seller is considered a seller concession Veterans may be exempt from the Funding Fee if the following apply: Veteran is receiving VA compensation for service connected disabilities Veteran is receiving retirement from VA in lieu of VA compensation Veteran is rated by VA as eligible to receive compensation as a result of pre-discharge disability exam Surviving spouse of a Veteran who died in service or from service-connected disabilities Type of Veteran Down Payment Percentage for First Time Use Percentage for Subsequent Use Purchase None 2.15% 3.30% Regular Military 5% or more up to 10% 1.50% 1.50% Reserves/National Guard 10% or more 1.25% 1.25% None 2.40% 3.30% 5% or more up to 10% 1.75% 1.75% 10% or more 1.50% 1.50% Cash-Out Refinance Regular Military 2.15% 3.30% Reserves/National Guard 2.40% 3.30% Interest Rate Reduction Refinance Loan (IRRRL) Regular Military AND Reserves/National Guard.50%.50% Purchase, IRRRL and Cash-Out Refinance 1-4 Unit Primary 1-4 Unit Primary Program Eligibility Maximum LTV/CLTV/HCLTV Purchase LTV CLTV/HCLTV FICO 100% 100% 640 Interest Rate Reduction Refinance Loan (IRRRL) LTV CLTV FICO N/A Unlimited Unit Second Home N/A Unlimited 640 2

3 1-4 Unit Investment Ineligible Cash Out Refinance LTV CLTV FICO 1-4 Unit Primary 90% 90% 640 All Non-VA to VA refinance transactions must be considered a cash-out refinance Acceptable AUS LP: Accept and Caution Findings DU: Approve and Refer Eligible Programs Fixed Rate Purchase IRRRL Refinance Cash-Out Refinance Ineligible Transactions Texas Cash-Out 50(a)(6) Borrower Eligiblity Borrower Eligibility A veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940, and was discharged under conditions other than dishonorable. Refer to additional requirements below: Service Veteran must have served at least: Requirement 90 days or more, any part of which occurred during wartime, OR 181 continuous days or more (peacetime) 2 years Active Duty required if: The veteran enlisted (and service began) after September 7, 1980, OR The veteran entered service as an officer after October 16, 1981 AND The Veteran must have completed either: 24 continuous months of active duty, OR The full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days (peacetime) Spousal Eligibility Reserve/National Guard: Eligible after completion of 6 years of service Some spouses of veterans may have home loan eligibility if the following circumstances apply: The unmarried surviving spouse of a veteran who died as a result of service or service-connected causes o Unmarried, surviving spouse of a veteran killed in action must obtain individual Certificate of Eligibility and may not use deceased spouse s COE The spouse of an active duty member who is listed as missing in action (MIA) or a prisoner of war (POW) for at least 90 days o Eligibility under this MIA/POW provision is limited to one-time use only Note: Spouse s COE cannot be obtained online and may only be obtained from the appropriate VA eligibility 3

4 center. Borrower Eligibility Same-Sex Marriages FTMC credit policy, including but not limited to the following, must be followed the same as for co-borrowing spouse or non-borrowing spouse, when applicable, and extend the same rights as marriage. Assets Community Property Credit and Liabilities Property Ownership Title The following information for loan applications of same-sex married couples MUST be obtained using the VA Guaranty Request Form for Same-Sex Marriages. The Underwriter must then forward via to the appropriate VA Regional Loan Center for further review: o Date and State of marriage o State of residence at time of marriage o State where subject property is located o Current State of residence o Estimated date of loan closing The VA Regional Loan Center will then notify the Underwriter if the veteran is eligible for the full 25% loan guarantee. If so, Underwriter should process the loan in WebLGY as Sole Ownership and follow the same process as for loan applications of opposite-sex married couples. If not, the loan application is considered a 'joint application and ineligible if it results in less than 25% loan guarantee. Note: Marital status is determined by borrower s declaration at application. Under no circumstance should underwriters require the borrower to furnish documentation to verify the information listed above. Periods of Service Wartime Peacetime World War II: 9/16/1940-7/25/1947 Post World War II period: 7/26/1947-6/26/1950 Korean Conflict: 6/27/1950-1/31/1955 Post Korean period: 2/1/1955-8/4/1964 Vietnam Era: 8/5/1964-5/7/1975 Post Vietnam period: 5/8/1975-8/1/1990 The Vietnam Era begins 2/28/1961 for those individuals who served in the Republic of Vietnam Persian Gulf War: 8/2/1990- date to be determined 4

5 Joint Applicant Non-Occupant Borrower Living and Land Trusts Occupancy Borrower Eligibility Verification of VA Verification of VA Benefits must be completed and signed by the veteran and placed in every loan file Benefits EVEN IF THE VETERAN IS NOT EXEMPT The borrower cannot be deemed eligible until the COE is obtained A non-veteran co-signer who is not the legal spouse to the borrower is Ineligible if it results in less than a 25% loan guarantee. Ineligible Ineligible Primary Residence Only Borrower must sign and execute the following forms to certify the occupancy requirement is met: VA Form a at loan application VA Form at closing Note: Second homes are eligible for IRRRL transactions ONLY. Borrower must sign a letter to verify the property was previously occupied as their primary residence. Refer to Interest Rate Reduction Refinance section for additional requirements. Investment properties are ineligible for ALL VA products. Credit Requirements Minimum Credit Score 640 If the borrower has No Score, a manual underwrite is permitted Maximum Debt-to-Income Ratio 41% with Accept/Eligible or Refer May exceed 41% with Residual Income > 20% over the guideline o Loans closed with a debt-to-income ratio > 41% require a statement justifying the compensating factors of the loan, Income Requirements and Documentation General Requirements and must be signed by the Underwriter s Supervisor, unless the residual income is > 20 % over the guideline Accept Refer Gaps in employment > 60 days require a written explanation Gaps in employment > 30 days require a written explanation Veterans on Active Duty A Military Leave and Earnings Statement (LES) is required dated < 120 days on existing construction and < 180 days on new construction in lieu of a Verbal VOE and pay stub An LES is acceptable if obtained from mypay (formerly E/MSS- Employee Member Self Service) If the servicemember is within 12 months of release, the following must be obtained: o Documentation the servicemember has re-enlisted or has extended his/her period of active duty for a period longer than 12 months following the closing OR o Verification of a valid offer of local civilian employment following the release from active duty OR o A statement from the servicemember that she/he intends to re-enlist or extend his/her period of active duty for a period longer than 12 months following the closing AND o A statement from the servicemembers commanding officer confirming the servicemember is eligible to re-enlist or extend active duty and the commanding officer has no reason to believe that 5

6 o Credit Requirements such re-enlistment or extension of active duty will not be granted OR Documentation of other strong compensating factors that may render an approval Veterans Not on Active Duty Self-Employed Income Business Income Non-Taxable Income All of the following must be obtained: Verification of 2 years employment Most recent YTD pay stub documenting 1 full months earnings o It is acceptable for Department of Defense Employees to provide computer generated pay stubs from mypay (formerly E/MSS- Employee Member Self Service) Most recent 2 years W-2 s Verbal VOE completed within 10 business days of closing Note: Paystub requirement is met with 1 paystub, provided it shows a Year to date of at least 30 days. If the Veteran is paid weekly, and has been on the job for at least 30 days, one paystub showing the Year to Date will suffice. However if the veteran is paid weekly and started 3 weeks ago, the Underwriter must obtain the last 3 paystubs. Most recent 2 years signed complete individual tax returns Signed and executed form 4506T prior to final approval Balance sheets and P&L are NOT required No business tax returns are required if all of the following conditions are met: Borrower proves ownership of the business for at least the past 5 years Individual tax returns reflect consistent income for the past 2 years Funds for down payment or closing costs are not from the business Most recent 2 years signed complete individual tax returns Signed and executed form 4506T prior to final approval Balance sheets and P&L are NOT required if origination date is 7 months from the business fiscal year end for which tax returns or proof of income obtained from the IRS were provided Required Documentation: Most recent 2 years signed business tax returns Signed and executed form 4506T prior to final approval Non-taxable income may be grossed up for calculating the debt-to-income ratio ONLY o The grossed up figure cannot be used for residual income purposes Income must be likely to continue AND remain untaxed in the foreseeable future The following may be used as non-taxable income, but are not limited to those listed below: o Certain military allowances o Child support payments o Worker s compensation benefits o Disability retirement payments o Certain types of public assistance payments 6

7 Residual Income Requirement Verifying Current Employment Verifying Previous Employment Alimony/Child Support Credit Requirements All of the following must be obtained: Verbal VOE dated within 10 business days of the Note date Paystubs covering at least 1 full month earnings containing the following: o YTD earnings o Bonus income o Overtime income A written VOE is not required if: The borrower has been at the same employer for 1 year and W-2 forms for 1 previous year have been provided W-2 forms are not required if all the following are met: Borrower has been with the same employer for years Verbal VOE verifies length of employment and borrower is currently employed Borrower is not self-employed Borrower is not paid commission Bonus, Overtime or Secondary income is not used for qualifying purposes Stable monthly income is determined by using current base pay only Borrower must sign 4506T Borrowers on Active Duty W-2 forms are not required for a borrower that is on Acceptable documentation: Written VOE, VA Form covering a 2 year period OR Most recent 2 years W-2 s OR Income obtained from the IRS via a signed and executed 4506T prior to closing Active Duty The following must be obtained: Most recent 3 months bank statements or cancelled checks AND Copy of the divorce decree or child support order to evidence 3 years continuance Residual income is the amount of net income available to the borrower after all monthly debts are paid. The appropriate residual income amounts vary according to loan size, family size and region of the country. Gross monthly income - (Federal/State Taxes + SS/Med) - (PITI + HOA Fees + Special Assessment fees + ( Maintenance & Utilities) + All monthly obligations [Including alimony or child support] + Child Care Costs) = Residual Income Minimum Residual Income by Region Loan Amounts < Family Size Northeast Region Midwest Region South Region West Region 1 $390 $382 $382 $425 7

8 Credit Requirements $80,000 2 $654 $641 $641 $713 3 $788 $772 $772 $859 4 $888 $868 $868 $967 5 $921 $902 $902 $1004 >5 Add $75 for each additional member up to a family of 7 Loan 1 $450 $441 $441 $491 Amounts > 2 $755 $738 $738 $823 $80,000 3 $909 $889 $889 $990 4 $1025 $1003 $1003 $ $1062 $1039 $1039 $1158 >5 Add $80 for each additional member up to a family of 7 Includes all occupants that are currently a residing member of the household without regard to the nature of the relationship Note: Minimum Residual income amounts listed above are an integral part of VA credit standards. Permitting a lesser residual income amount may be allowed upon Senior Underwriter approval with documented VA approved compensating factors. Geographic Regions Northeast Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont Midwest Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin South Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia and West Virginia West Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming Credit History Accept Refer Mortgage Payment History If mortgage is 1x30 within the past 12 months, file must be downgraded to a Refer and be manually underwritten If mortgage history is > 1x30 within the past 12 months, file must be downgraded to a Refer and be manually underwritten o The late payment must be an isolated event in order for the Underwriter to approve with compensating factors Account Balances If rating is currently 90 days past due, file must be downgraded to a Refer and be manually underwritten A written explanation is required on mortgages with a 1x30 within the past 12 months If mortgage history is > 1x30 within the past 12 months, a written explanation is required AND o The late payment must be an isolated event in order for the Underwriter to approve with compensating factors If a mortgage or other significant debt is listed on the credit report as past due and was last updated 90 days, verification of current status must be obtained 8

9 Compensating Factors Maximum Number of Properties Minimum Cash Reserves Derogatory Credit Credit Requirements No determination of ratios or creditworthiness is required by the Underwriter Obtain explanation for derogatory credit. The Underwriter must assess the borrower s credit worthiness and document on VA Form Collections Isolated collections do not have to be paid off for loan approval as determined by AUS or Underwriter s discretion on a manually underwritten loan No new collection accounts opened within the past 12 months No outstanding or unpaid judgments or tax liens Consumer Credit Counseling Bankruptcy Chapter 7 Bankruptcy must be discharged for 2 years Borrower must demonstrate 12 months of satisfactory payments under the plan o The Counseling Agency must approve the new credit Chapter 13 If all payments have been made satisfactorily, credit may be considered re-established OR Borrower must have made 12 months consecutive timely payments AND Must obtain approval from the Trustee of Bankruptcy Judge for approval of new credit Alternative Credit Acceptable with a 12 month satisfactory pay history o For borrowers with no established credit history, payment records on utilities, rent, insurance or other expenses the borrower has paid may be used Compensating factors may be useful when underwriting loans that are marginal and do not meet the standard VA guidelines with respect to residual income and debt-to-income ratio, however they cannot be used to compensate for unsatisfactory credit. The following may be used as compensating factors, but are not limited to those listed below: Excellent long- term credit history Conservative use of consumer credit Minimal consumer debt Long- term employment Significant liquid assets Sizable downpayment for a purchase transaction Equity for a refinance transaction Little or no increase in shelter expenses Military benefits High residual income Low debt-to-income ratio Tax credits for child care Tax benefits of home ownership Unlimited VA Insured Properties: Borrower must have sufficient entitlement OR cash to cover the required 25% guarantee VA does not typically require minimum cash reserves. However, all assets listed on the loan application and submitted to AUS must be 9

10 Minimum Borrower Downpayment for Purchase Transactions Seller Concessions Credit Requirements fully documented. One of the following may be used for documentation: Verification of Deposit on VA Form a OR Most recent 2 months bank statements or the borrower s bank statements available to them via the Internet, ensure the URL appears on the document Verifications must be no older than 120 days(180 days for construction) No downpayment is required, however the borrower or spouse must have sufficient cash to cover all of the following: If the borrower has less than full entitlement, down payment or equity is required to cover at least 25% of the loan (25% guarantee) If the sales price exceeds the reasonable value established by the appraiser, the difference between the sales price and the loan amount Any closing costs or points that are the borrowers responsibility and are not financed in the loan Up to 4% in seller concessions may be in the form of any of the following contributions given by the seller or any other party involved in a mortgage transaction: Payment of the buyer s VA funding fee Prepayment of the buyer s property taxes and insurance Gifts Discount Points Temporary buy-down The pay off of credit balances or judgments on behalf of the borrower Borrower Paid Closing Costs Seller concessions do not include: Payment of the buyer s closing costs Payment of points as appropriate to the market The borrower may be charged customary and reasonable fees and charges The cost for any item charged to the borrower must not exceed the actual cost paid by FTMC, or charged to FTMC by the service provider Secondary Financing Second mortgage payment must be included as a significant debt o The Veteran must not be placed in a worse position than if the entire amount borrower had been guaranteed by VA Collateral Reminder: When ordering the appraisal, copy va.appraisal@53.com. This will notify Fifth Third when the appraisal is ready for review and a Notice of Value (NOV) can be issued within the 5 days to remain compliant. Properties Existing VA approved Builder ID Must be entered when ordering the VA Case Number. < 1 Year Ineligible Properties Manufactured homes Investment Properties located in FL Condominiums General VA can accept HUD/FHA/USDA condominium approvals if the project approval was dated prior to December 7,

11 New and Established Condos on VA Approved Condo List Credit Requirements VA cannot accept HUD/FHA/USDA condominium approvals if the project approval was dated on or after December 7, 2009 VA cannot accept phases annexed into the project approved by HUD/FHA/USDA if the annexation occurred on or after December 7, If this is the case, a full review of the legal documents for the entire project must be performed by VA. VA or FHA approved condo ID must be entered when ordering VA Case Number Submission to Condo Review Department is NOT required. Purchase Transactions VA will guarantee a loan to purchase or construct a primary residence for the following property types: 1-4 Unit primary residence 1-Unit condominium in an VA approved development May include simultaneous purchase of the land on which the property is situated or will be situated on May include construction of a primary residence on land that is already owned by the borrower No downpayment is required by VA unless the purchase price exceeds the reasonable value of the property. When VA eligibility is currently in use, the property is being sold and eligibility will be used on the purchase of a new home, the veteran must have sufficient remaining entitlement and downpayment: Permitted Underwriter must condition for Post Closing to submit required documents to obtain reinstated COE to VA with loan package to ensure sufficient eligibility for current transaction Underwriter must condition for the current mortgage loan on the home being sold to be paid-in-full at closing Interest Rate Reduction Refinance (IRRRL) Ineligible Purchase Transactions: Purchase of unimproved land Purchase of an investment property Simultaneously purchase and improve a primary residence IRRRL Refinances are designed to refinance an existing VA-guaranteed loan at a lower interest rate to reduce the monthly principal and interest payments. Always use VA Form , IRRRL Worksheet, to calculate the maximum loan amount. The maximum loan amount is the existing VA loan balance, plus the following: Allowable fees and charges Up to 2 discount points VA Funding Fee Borrower Borrowers obligated on the new refinance must be the same as the borrowers on the current mortgage being 11

12 Eligibility Transactions refinanced unless the proposed scenario is a permitted obligation change listed in the eligibility table below o The veteran must still own the property o Any proposed change in obligors not included in the below table MUST be approved by VA Mortgage History Fifth Third to Fifth Third VA IRRRL Borrowers Obligated on Current VA Loan VA IRRRL Borrower Eligibility Proposed Borrowers to be Obligated on New IRRRL Is IRRRL Permitted? 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 veteran who has substituted entitlement Veteran and spouse Spouse alone (veteran died) Yes Veteran and nonveteran joint loan obligors Veteran alone Veteran and spouse Divorced spouse alone No Unmarried veteran Spouse alone (veteran died) No Veteran and spouse Different spouse alone (veteran died) No Veteran and nonveteran joint loan obligors Nonveteran alone Note: Any proposed scenario not listed must be escalated to the Exception Desk for review and submission to VA for approval. Loan Requirements Non-Fifth Third to Fifth Third IRRRL Fifth Third to Fifth Third IRRRL 0 X 30 mortgage payment history in the most recent Mortgage may not be more than 30 days late at the time 12 months of closing All VA IRRRL transactions, where Fifth Third IS the current Servicer require: No minimum FICO At the time of loan application, the borrower must exhibit an acceptable payment history as described below: For mortgages with less than a 12 months payment history, the borrower must have made all mortgage payments within the month due For mortgages with a 12 months payment history or greater, the borrower must have: o Experienced no more than one 30 day late payment in the preceding 12 months AND Yes Yes No 12

13 Non-Fifth Third to Fifth Third VA IRRRL Transactions o Made all mortgage payments within the month due for the three months prior to the date of loan application All VA IRRRL transactions, where Fifth Third is NOT the current Servicer require: 640 minimum FICO A tri-merge or mortgage only with score credit report must be generated/ supplied and actual FICO s must be entered into the system to ensure accurate loan pricing and reporting. The credit report is only to be used for credit score and validating the mortgage payment history. o Mortgage only credit report must have the following attributes: Must identify the borrower Must have rating for all mortgage loans Must come from a credit reporting agency that meets FHA requirements Must use same logic for determining the Borrower representative score. Refer to the Credit Score section of the Fifth Third FHA Lending Manual for additional information. 0 X 30 mortgage payment history in the most recent 12 months. If loan being refinanced has been open < 12 months, a previous mortgage/rental history totaling 12 months must be obtained and meet the 0X30 payment history guideline. be structured or approved to allow the borrower to receive cash back at closing The new loan cannot o Cash back to the borrower is permitted in the following situations ONLY: Computational errors Changes in final payoff figures Upfront fees paid for the appraisal and/or credit report that are later added into the loan Refund of the escrow balance on the old loan o Incidental cash back at closing cannot exceed $500 The maximum term of the new loan is the original term of the loan being refinanced plus 10 years; the maximum maturity for amortized loans is 30 years and 32 days The interest rate must be a lower interest rate unless the current loan being refinanced is an Adjustable Rate Mortgage The principal and interest payment may only increase for the following reasons: o The current loan being refinanced is an Adjustable Rate Mortgage o The new term is shorter than the current loan being refinanced o Closing costs are financed o Up to 2 discount points are financed o Funding Fee is financed If the monthly payment (PITI) increases by 20% or more, the following requirements must be met: o The borrower must qualify for the new payment o The Underwriter must include certification that the borrower qualifies for the new monthly payment A current Fifth Third serviced VA loan that has been previously modified is eligible for an Interest Rate Reduction Refinance Loan provided it meets all other requirements for a VA IRRRL o Non-Fifth Third modified VA loans are ineligible The borrower must sign a completed VA Rate Reduction Certification for all IRRRL Refinance Loans 13

14 Transactions Certificate of Eligibility (COE) is not required if a new VA case number is successfully obtained No appraisal is required A signed and executed 4506-T is NOT required Cash-Out Refinance Maximum Loan Amount is 90% of the VA reasonable value plus the VA funding fee The funds from the new mortgage may be used to pay the following: o A VA, FHA or Conventional Mortgage that is current or delinquent o Tax or judgment liens o Allowable fees, charges and discount points The veteran must have sufficient available entitlement for the loan o If an existing VA loan on the same property will be paid off by the new loan, the entitlement for the existing loan can be restored in order to obtain the new financing Allowable Fees The borrower may pay a maximum of the following: Reasonable and customary amounts for any or all of the Itemized Fees and charges designated by VA 1% flat fee Reasonable discount points Allowable Itemized Fees and Charges Appraisal and Compliance Inspection o The borrower cannot pay for a 2 nd appraisal requested by the lender for reconsideration of value Recording fees Credit report Prepaid Items Hazard Insurance Flood Zone Determination Survey Title Examination Special mailing fees for Refinance Loans VA Funding Fee Mortgage Electronic Registration System Fee Other fees authorized by VA 1% Flat Fee Note: When a fee is generated through a 3 rd party, the amount paid by the borrower must be the actual charge to the 3 rd party Fees NOT Permitted to be Charged to the Borrower The following fees may not be charged to the Veteran as Itemized Fees and Charges and must be paid from the 1% Flat Fee charged to the borrower: Lenders appraisals Lenders inspections, except in construction loan cases Loan closing or settlement fee Doc prep fee Loan preparation or conveyance fees Attorney s fees other than title work Photographs Interest rate lock-in fee Postage and other mailing charges, stationary, telephone calls and other overhead Amortization schedules, pass books and membership or entrance fee Escrow fees or charges Notary fee Commitment fees or marketing fees of any secondary purchaser of the mortgage and preparation and recording of assignment of mortgage to such purchaser Trustees fees or charges 14

15 Transactions Loan application or processing fee Fees for TIL preparation Tax service fee Wood Destroying Organism (WDO) or termite inspection Any subordination fees or subordination agreement expensed for secondary financing (must be paid by the Veteran at time of closing) Pricing Escrows Required on all LTV s Extended Lock Ineligible Temporary Buydowns Ineligible Overage/Underage Policy Eligible when the borrower(s) gross monthly income is greater than 80% of the HUD Median Income for the MSA Assumability Yes 15