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 Zoom 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

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