Underwriting VA Loans

This course provides clear instruction for those looking to add the VA program to their existing product mix. The course explains guidelines and provides strong advice from industry experts who have worked with the programs personally. The target audience would include processors, underwriters, quality control staff, and anyone who wants to better understand the underwriting process of VA loans.

During this course participants will be introduced to VA loan programs, VA eligibility and entitlement, applicant and property requirements.

By the end of the course students will be able to distinguish between Conventional and VA loan requirements. Determine VA loan guaranty based on eligibility and entitlement; calculate VA loan maximum mortgage and, perform a credit analysis of borrower documentation consisting of income, asset, and liability; as well as determining allowable seller contributions and closing costs.

Classes consist of four 90-minute live sessions with instructors delivered through the WebEx conferencing platform.

What will I learn?

Upon completion of the course, students will be able to:

  • Assess veteran borrowers VA Eligibility to determine that it meets loan file approval criteria
  • Evaluate a Power of Attorney and determine requirements are met
  • Calculate VA maximum entitlement and guaranty
  • Calculate the VA maximum mortgage amount
  • Analyze the VA Funding Fee to validate the correct amount has been used based on VA status, down payment and use
  • Conduct an analysis using the VA Loan Analysis Worksheet to include: credit history, income/employment, funds to close, VA ratio, residual income and compensating factors
  • List what is and isn’t included in seller concessions
  • Categorize allowable and unallowable fees and charges
  • Summarize eligible and ineligible property types for VA financing
  • Apply the requirements underwriting a VA appraisal
  • Successfully analyze the IRRRL Worksheet
  • Analyze cash-out and construction-permanent loans

Participants will be provided a workbook for each of the four sessions.

Participants will be required to complete an assessment at the end of each of the four sessions to assess mastery of the content.

To receive the Certificate of Completion participants must receive a course total of 70% or greater.

Benefits

By the end of the course students will be able to distinguish between Conventional and VA loan requirements. Determine VA loan guaranty based on eligibility and entitlement; calculate VA loan maximum mortgage and, perform a credit analysis of borrower documentation consisting of income, asset, and liability; as well as determining allowable seller contributions and closing costs.

Agenda

During the course the following topics will be covered:

Session One

  • VA Eligibility
  • Power of Attorney
  • VA Entitlement
  • VA Loan Limits/Max Mortgage
  • VA Funding Fee

Objectives

  • Describe VA eligibility criteria
  • Explain why a Power of Attorney is relevant in a VA loan transaction
  • Describe VA entitlement requirements
  • Calculate the VA maximum mortgage amount
  • Identify the correct VA Funding Fee based on VA status, down payment and use

Session Two

  • Credit Underwriting
    • Credit History and Obligations
    • Employment and Income

Objectives

  • Begin your credit analysis:
    • Analyze credit history and obligations to determine requirements are met
    • Evaluate civilian income to ensure it meets income requirements
    • Evaluate military income to ensure it meets income requirements
    • Analyze effective income used for qualifying a veteran

Session Three

  • Seller Concessions 
  • Closing costs 
  • Fees 
  • Property Eligibility 
  • Eligible Property 
  • Ineligible Property 
  • Appraisal Processing Procedures
Objectives
  • Determine allowable seller concessions
  • Recognize eligible property types
  • Recognize the requirements and processes for ordering and reviewing appraisals

Session Four

  • Property Eligibility (cont.) 
  • Appraisal Processing Procedures 
  • Refinance Options

Objectives

  • Summarize ineligible property characteristics
  • Apply the requirements when underwriting a VA appraisal
  • Successfully analyze the IRRRL Worksheet
  • Analyze cash-out and construction to permanent loans

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