VA Flashcards
Q: Do I need to document reserves if I am not using rental income in effective income?
A: No, VA doesn’t require reserves when not using rental income in effective income.
Q: What are VA guidelines on Gift Funds?
A: A gift can be provided by a donor that does not have any affiliation with the builder, developer, real estate agent, or any other interested party to the transaction.
We must verify that sufficient funds to cover the gift have been transferred to the borrower’s account or that funds will be documented as received by the closing agent at the time of closing.
NOTE: Regardless of the method used to document receipt of funds, gift donor ability must be documented (copy of cancelled donor check, donor bank statement showing withdrawal, copy of wire transfer, etc.)
Q: Can a family member give a gift of equity on a VA loan?
A: Yes, but since it’s not actual money changing hands, it cannot be used for reserves, liquid assets or to reduce the funding fee. It’s simply a seller selling their home to a close relative for substantially less than they have asked on the open market.
Example: Sales Price $250,000, Gift of Equity $50,000, Base Loan amount would be $200,000.
This gives us an LTV of 80%. 1st time user for funding fee is 2.15%.
Funding fee would be $4,300 based on the $200,000 base loan amount.
NOTE: Immediate family member means father, mother, husband, wife, son, daughter, brother, sister, grandfather, grandmother, grandson, granddaughter, father-in-law, and mother-in-law.
Q: What is considered a large deposit on VA?
A: We follow FHA guidelines of documenting anything over 1% of the sales price.
Q: Can we use self-employed business assets to close if the assets are not utilized as income?
A: Yes. We just need to verify that the borrower is owner of the asset account and business. We do not need to do a cash flow analysis of the business.
Q: Can a VA appraisal be transferred from one lender to another?
A: Yes.
To transfer a VA appraisal TO Guaranteed Rate: One of our underwriters will need to issue the Notice of Value in our name
To transfer FROM GRI to another investor: Contact the National Support Center to have the appraisal transferred
How does VA treat forebearance?
All good, just need to be current and show 6 mo’s of on time payments either prior to or after coming out of forebearance.
What is the funding fee for first time use va loan?
What about if they put 5% down? what about 10% down?
What is funding fee for subsequent usage?
What about if they put 5% down? what about 10% down?
- 3% , if 5% down 1.65, if 10% down 1.4
3. 6% if 5% down 1.65, if 10% down 1.4
Rental income on departing residence, can you use? do you need a managment company in place? do you need past landlord history
What if the property is a 2 unit?
Yes can use, no managmeent history needed on departing residence. Will need MRA , lease and 1st mo rent or security deposit check…. if renting to family
For 2 unit VA requires a 2 year landlord history or you will have to go into contract with property mangment co.
What is a new Guide VA requires for Covid on properties held?
VA requires a 12 MO history on any VA mortgages held due to COVID
Underwriting will not accept a credit supp they want a VOM or 12MO Mortgage statements
