VA & VA IRRRL (IRRRL Below)
User Guides and Instructions:
VA Funding Fee Table and Approval Letter:
The following are the steps to follow for a VA New Construction File:
- Get a 1-2-10 Warranty on the property, paid for by the Builder or the Buyer.
- Get the VA Form 26-1859-Warranty of Completion of Construction executed by the Builder and the Buyer.
- Review the Chapter 10 and 12 of the VA Pamphlet for additional details
VA IRRRL Instructions/Guidelines & Forms
VA IRRRL Re-coupment Calculations
Determining Recoupment Period for IRRRL's from VA 8 8 2019
Clarification of Policy for IRRRL's 8 8 2019
VA IRRRL FAQ Circular From 1/20/2106
VA Power Point for Recoupment and enhancements coming to Weblogy
What's included in the 3% maximum fees rule
Planet Home VA-IRRRL Conforming High Balance Fixed Rate ARM Matrix
VA IRRRL Submission Doc Requirements
Loan Officer To Request Docs From Borrower/s:
- Drivers License - all borrowers
- Old Note
- Old Survey from prior closing
- eConsent executed in Encompass by the client/s
- Full VA IRRRL executed disclosure package signed by the client (We have to have eConsent before we can send this to clients)
- Mortgage Statement on existing VA loan (Completed statement from the Company)
Docs to Order (or from LO)
- LO to pull: Tri-Merge Credit Report
- LO to pull: For Penny Mac: Order the AVM from the pennymacusa.com site. (See more instructions below)
- Processor: Send the AVM results, if your wanting to use the AVM to [email protected]
- Processor: Flood Cert from CoreLogic
- Processor: VA Case #: Pulled from WEBLGY How to order a VA IRRRL Case # Click Here
- Processor: VA COE - Penny Mac now requires this on all VA IRRRL's. Go ahead and pull this quickly so we can start the clock in case it does not come back in an automated fashion.
- Processor: CAIVERS: Needs to be ordered for the file submission to each investor through FHA Connection
- Loan Officer to Provide: Recoupment Calculations: 36 month recoupment calculations-Encompass VA IRRRL form completed. Penny Mac recoupment calculation: From the Loan Estimate: Section D + E +H - Lender Credit
- Processor From Encompass: Loan Comparison Statement (Old vs. New) must be prepared in Encompass
- Processor To Order: Full preliminary Title Commitment
- Processor To Schedule: Settlement: Will take place at the Title Company that provides the commitment. Red Diamond to schedule the closing date and time with the Title Company.
- LO To Request: Homeowners Insurance: Need a Dec page and an invoice to determine the next due date of the insurance policy.
- Processor To Order: Payoff Statement: An updated payoff is required on all loans prior to closing.
- Processor To Order: Verbal Verification Of Employment: Required on all salaried borrowers
- Processor To Order: Business Verification: Required for self employed borrowers
- Processor to Handle: VA ID's: Change Form 26-1802 to Penny Mac's VA ID
Additional VA IRRRL Guidelines to follow:
- Fixed to fixed refinances must drop by 1/2% minimum
- Fixed to ARM must drop 2% minimum
- Term reduction is allowed...see additional investor guidelines for this
- See Penny Mac AVM Guidelines below with links to order the AVM
- AVM - Or similar-See Investors guidelines for these requirements
- No Tax Transcripts or 4506T's required with Penny Mac and hopefully most investors
- No Income Documentation other than sufficient contact information to complete a verbal verification of employment for salaried borrowers.
- Self-employed borrowers need to have a verification of the business through a 3rd party source.
- Full escrow accounts are required
- Funding Fee is .50% on all VA IRRRL's. With disability the Funding Fee is waived.
- DTI is not calculated on an IRRRL
- Reserves are not required on an IRRRL
- Source of funds are not required on an IRRRL
- Manual underwriting only
VA Underwriting Tip:
If you have 2 borrowers on a VA loan you will get approve/ineligible
How to Reinstate Eligibility on the VA Portal Website
- Log into the VA portal
- Go to eligibility
- Go to search COE
- View existing COE
- Click on new application
- Put in new property address
- Mark that he does not currently own a home.
It sounded like we would then upload the CD's from the sale of the home.
Penny Mac VA IRRRL AVM Instructions
1. Go to www.pennymacusa.com Use CHROME....Click REFINANCE A HOME > HOME VALUE
ESTIMATOR....Using this you will have to do a PRINT SCREEN for the file, but we will accept it.
2. Email our pricing desk with the loan # that is registered as a VA IRRRL, that you are requesting a AVM.
[email protected]
We still have a max LTV/CLTV of 110% of the AVM.
VA Cash Out Guidelines