VA RATE REDUCTION REFINANCE (VAFX)

Transcription

1 Table f Cntents 1. Eligible Mrtgage Prduct Existing Lan Elibible Mrtgage Prduct New Lan VA Funding Fee (VAFF) VA IRRRL (Interest Rate Reductin Lan) Case # Entitlement/Guaranty Underwriting Requirements Age f Dcuments Appraisal Requirements Assets Brrwer(s) Cash Out Credit Requirements Demand Discunt Pints Dcumentatin Required Emplyment Verificatin FICO High Cst/High Priced Maximum Lan Amunt Maximum LTV/CLTV Prperty Type Ratis Residual Incme Same Sex Married Cuples Slar Energy Efficient Imprvements Title VA Allwable & Nn-Allwable Fees

2 ELIGIBLE MORTGAGE PRODUCT-EXISTING LOAN ELIGIBLE MORTGAGE PRODUCT-NEW LOAN VAFF (VA Funding Fee) VA IRRRL CASE# VA t VA Refinance Fixed Rate 30 year Fixed Rate 15 year (Retail Only- Manual Lck) VA Funding Fee.50% VA Funding Fee paid in cash- Wrksheet will have t be manually cmpleted by the underwriter. Order frm VA Prtal: 1. Access VA Prtal 2. Access Weblgy 3. Access Lan- drp dwn rder IRRRL 4. Enter LIN f current lan being refinanced r veterans scial security number and veterans birthdate ENTITLEMENT/GUARANTY Certificate f Eligibility is nt required n IRRRL. VA issues 25% guarantee n all IRRRL s. UNDERWRITING Must be manually underwritten by PBM Apprved VA Underwriter REQUIREMENTS Must decrease f current interest rate n ld lan by a minimum f.125% (1/8%) AGE OF DOCUMENTS APPRAISAL REQUIREMENTS APPRAISAL DRIVE BY ONLY- N lder than 120 days at time f funding. CREDIT- MORTGAGE RATING ONLY N lder than 120 days at time f funding INCOME- VERBAL ONLY- N lder than 120 days at time f funding ASSETS IF REQUIRED FOR CLOSING N lder than 120 days at time f funding Requires Cnventinal 2055 exterir (SFR & PUD), 1075 exterir (Cnd), 1025 interir/exterir 2-4 units Lan Amunt with VAFF cannt exceed the appraised value N Appraisal Required: LLPA by Secndary See Rate Sheet fr details Lender Specific Exceptin frm PBM Exceptin Request See Maximum Lan Amunts ASSETS If the Clsing Disclsure indicates that the brrwers are required t bring in funds fr clsing, a bank statement r VOD verifying the surce f funds is required

3 BORROWER(S) Brrwer(s) must have been bligated n the riginal VA Lan. Change in Mrtgagrs are nly permitted with the prper dcumentatin in fllwing cases: EXISTING VA LOAN Unmarried Vet Vet and Spuse Vet and Spuse Veteran alne Veteran and spuse Veteran and nn-veteran jint lan bligrs NEW LOAN Veteran and New Spuse Divrced Veteran nly (Cpy f 6 m cancelled checks) Veteran and New Spuse Different veteran wh has substituted entitlement A Veteran s Widw/Widwer- One time purchase Veteran alne CASH OUT Maximum cash back t brrwer at clsing is Zer. Hwever, Maximum cash up t $500 will need t be applied twards principal reductin Maximum cash ver $500, lan dcuments will need t be re-drawn CREDIT REQUIREMENTS Mrtgage Rating ONLY with Scres frm all three repsitries Experian, TransUnin and Equifax. Nte: Brrwers must have a minimum f ne credit scre. All Mrtgage(s) must have a mrtgage histry f 0 x 30 in the last 12 mnths Refinanced cannt be less than 6 mnths payment histry with NO 0 x 30 day lates during the life f the lan If mre than (4) financed prperties, secndary pricing exceptin is required. DEROGATORY CREDIT 2 Years elapsed since the discharge f Chapter 7, Chapter 13 Bankruptcy r Deed in Lieu/Shrt sale when the brrwer was nt delinquent at transfer. 3 years elapsed since cmpletin f Freclsure, Deed in Lieu/Shrt Sale when the brrwer was delinquent at time f transfer. All judgments must be paid in full r subject t repayment plan with a histry f timely payments. Nte: In a case where the brrwer(s) has less than 3 years, but ver 2, an exceptin is required. Branch must the infrmatin belw with the PBM Lan Exceptin Frm dated t PBM Lan Exceptin Request, VA Lan Analysis/1003 DU Apprval Credit Appraisal And any ther dcumentatin assciated with the exceptin request. DEMAND Payff must reflect current lan balance and nt mre than 60 days interest. (example; clsing mnth f May, May payment nt made, interest fr April & May allwed n demand & financed). VA Interest Rate Reductin Refinancing Lan Wrksheet ( ) must be cmpleted t determine the ttal lan amunt. VA IRRRL Wrksheet can be fund n the VA Website (Frm ) OR In lan perating system. DISCOUNT POINTS Limited t 2%

4 DOCUMENTATION REQUIRED EMPLOYMENT VERIFICATION VA Benefit Letter fully cmpleted and executed by the Veteran, nly if nt nted n the IRRRL Case Assignment in lan file. VA IRRRL Wrksheet t be cmpleted by Underwriter VA Lan Cmparisn Wrksheet Cpy f fully executed Nte/Deed n existing mrtgage t establish rate reductin 1802A and 1003 must be prcessed as fllws: Initial 1003 & pages 1 & 2 nly f the 1802A must be executed prir t lan dcuments. The 1003 page 3 and Page 1 f the 1802A must be signed by the lan fficer. Final 1003 & pages 1 & 2 nly f the 1802A must be executed at clsing. Pages 1 f the 1802A are t be executed by PBM VA Apprved Underwriter with final lan apprval date. CAIVRS must be run n all brrwers. LDP/GSA required n all parties. CD Prefunding and Final must be reviewed t assure any clsing csts financed in the lan will meet the 1% riginatin vs Nn-allwable fee requirement. (Veteran is nt allwed t pay mre than 1% in nn allwable fees r 1% riginatin) VVOE needed 10 days prir t Nte date N incme dcumentatin required if PITIA is < 20% If > 20% PITIA- Full credit qualificatin is required per PBM Guidelines FICO 620 Cnfrming 640 High Balance HIGH COST/ HIGH PRICED MAXIMUM LOAN AMOUNT Nt Allwed 620 FICO Maximum lan amunt including VA Funding Fee (VAFF) is $424, FICO Maximum lan amunt including VA Funding Fee (VAFF) is $424,101 and Abve The maximum lan amunt is the existing VA lan balances plus the fllwing: Any late charges Allwable Fees (see Allwable Fees ) Nn-Allwable Fees equal t 1% riginatin when n riginatin fee is charged t Veteran (See NON-Allwable Fees ) VAFF f.50% N delinquent payments can be financed. The Veteran must be paid current t mnth f clsing. MAXIMUM LTV/CLTV PROPERTY TYPE Ttal LTV cannt exceed 100% f appraised value with VAFF and maximum lan amunt N appraisal See Appraisal Requirements and Maximum Lan Amunt 1-4 units; PUDs & Cnds (VA apprved nly) Owner ccupied ONLY RATIOS N Rati if PITIA is nt increasing mre than 20% If > 20% increase, Max DTI is 41% & a full credit qualify is required

5 RESIDUAL INCOME Table f Residual Incme by Regin Fr lan amunts f $79,999 and belw Family size Nrtheast Midwest Suth West 1 $390 $382 $382 $425 2 $654 $641 $641 $713 3 $788 $772 $772 $859 4 $888 $868 $868 $967 5 $921 $902 $902 $1004 Over 5 Add $75 fr each additinal member up t a family f 7 Fr Lan Amunts f $80,000 and abve Family Size Nrtheast Midwest Suth West 1 $450 $441 $441 $491 2 $755 $738 $738 $823 3 $909 $899 $899 $990 4 $1,025 $1,003 $1,003 $1,117 5 $1,062 $1,039 $1,039 $1,158 Over 5 Add $80 fr each additinal member up t a family f 7 SAME-SEX MARRIED COUPLES Lender Prcessing: Same-sex married cuples when executing the 1003 and 1802a acknwledge that they meet the fllwing VA requirement: The marriage was legal in the place where the Veteran r the Veteran s spuse resided at the time f the marriage; Legal in the place where the Veteran r the Veteran s spuse resided at the time the cmpleted 1003 and 1802a were submitted t PBM; Legal in the place where the Veteran r the Veteran s spuse resided in at the time f clsing. If the brrwer asserts a spusal relatinship in item 19 (1802a) and signs the frm, which includes a certificatin by the brrwer that the infrmatin is true and cmplete t the best f their knwledge and belief, PBM may prcess the lan per nrmal practices withut submitting a lan package t VA fr apprval f spusal status: If the brrwer infrms the lender that he r she is uncertain as t whether the marriage may be recgnized fr VA purpses, the underwriter must request that VA make a determinatin regarding whether the marriage can be recgnized, The fllwing infrmatin shuld be prvided t Phenix Reginal Lan Center via at : LPGC.VBAPHO@va.gv fr further review: Date and state f marriage; State(s) f residence f the parties at the time f marriage; State where the subject prperty is lcated; Current state(s) f residence f the parties; Estimated date f lan clsing; and Whether VA has previusly recgnized the marriage fr the purpse f a different VA benefit r service. The underwriter shuld request this infrmatin frm the brrwer if nt already available

6 SOLAR/ ENERGY EFFICIENT IMPROVEMENTS PACE/HERO-(Lender Specific Required) IRRRL can be dne with PACE/HERO prgram. PACE/HERO prgram must be n prelim after riginal lan was guaranteed Underwriter will need prf f new prperty tax debt and must be used in the new PITI fr IRRRL. Subrdinatin agreement executed by Cunty/City Tax cllectr, Energy Efficient cmpany hlding Lien & Brrwers Slar Leased equipment Equipment that is leased is acceptable t remain. Slar payments need t be viewed by underwriter t determine if the payment is in excess f the Maintenance/Utility allw fee fr hme. (Example- $.14 x sq. ft. f hme = Fee) if fee is $ and Slar lease is $350 file will need t be prcessed as Rate and Term t credit qualify. Slar lease agreement must be reviewed by Crprate t validate freclsure psitin meets VA guidelines. (Slar cmpany t have fllwing freclsure verbiage: Must remve equipment withut recurse t the lender r VA and return rf t water tight status). TITLE Clsing Prtectin Letter Title t be taken in the name f veteran, veteran and spuse, r tw veterans separately. N trusts allwed fr vesting. VA ALLOWABLE AND NON-ALLOWABLE FEES VA Allwable Fees Appraisal Recrding Deed f Trust Credit Reprts Prepaid Hazard Ins. Fld Zne Determinatin Title Plicies VAFF Additinal third party fees that the veteran has authrized (Hme Inspectin) NON-Allwable Fees Base Escrw Fee Lan Tie-in Fee Demand/Payff Statement fee (k n refinance nly) Sub Escrw Fee (title payff fee) Re-cnveyance Fee (k n refinance nly) Prepayment penalties (k n refinance nly) Any Lender Dcument Fee Prcessing Fee Warehuse Fee Lan Discunt Pints Charges by ther Lenders Tax Service Cntract Underwriting Fee Administratin Fee Pht Inspectin Fee

7 VA ALLOWABLE AND NON- ALLOWABLE FEES CONTINUED Recrding Fee (grant deed) Messenger r Delivery Fees Ntary Fee Hmewners Assc. Transfer Fee Assignment Fees Dcumentary Transfer Tax Fee Bring Dwn Fee Change f Ownership Fee Cmmissin Transactin Crdinatr Fee Title Plicy Endrsement Fees Nte: As lng as there is n riginatin fee being charged t the veteran, the veteran can pay up t 1% f the ttal lan amunt in NON-Allwable fees