VA
Loan Guidelines

All FHA loans must be underwritten by the Fannie Mae desktop underwriter system or the Freddie Mac Loan prospector advisor and receive an Approve/Eligible (Fannie Mae) or a Accept/Eligible (Freddie Mac)

Purchase, Rate and Term refinance/No cash-out refinance eligibe
– Minimum Credit score of 580

Salaried | Hourly Borrower(s)
– Two-year employment history must be documented via the two most recent tax returns
– Previous two years W-2s
– Recent paystubs to illustrate earnings for the previous 30 days

Self-Employed Borrower(s)
– Business must have been in existence for at least two years
– Personal signed individual tax returns as well as the corporate or partnership tax returns for the two most recent tax periods

Properties Listed for Sale
– Primary residence only |Limited Cash-Out | Cash-Out Refinance loans
-The subject property must be taken off the market on or before the loan closing date and the borrower must confirm their intent to occupy the subject property

Minimum Credit Score
– Minimum credit score of 580 required for all borrowers, regardless of Automated Underwriting decision

Minimum Loan Amount
– Minimum loan amount $125,000 for all property types

Multiple financed properties
–Primary residence loan- No limits to the number of financed properties
-2nd Home | Investment property- maximum 10 financed properties

Student Loans
–Underwriting may use the payment on a current credit report or a recent statement for qualifying purposes
-Otherwise 0.5% of the outstanding loan balance reported on the credit report will be calculated to determine the monthly obligation

Mortgage rating
– No lates accepted in the last 12 months

Qualifying Ratios
– Current guidelines refer to the Fannie Mae or Freddie Mac automated underwriting response
– Traditional guidelines are capped between 45-50% maximum debt to income, although VA ratios often exceed 50% with excellent credit Rental Income
– Will be determined by the supplemental income/loss reported on the respective Schedule E from the two previous tax periods

Reserves
– Based upon the Fannie Mae or Freddie Mac automated underwriting response
– (3-4) Unit properties require 6 months of the total monthly obligation

Appraisal
– All appraisals must be completed by FHA-approved appraisers
– Appraisal must meet FHA minimum property requirements/standards (MPR/MPS)

Seller concessions
–May not exceed 6% of the value of the property as indicated on the Notice of Value

Bankruptcy
– CH7 Bankruptcy requires 24 months seasoning from discharge date
– CH13 Bankruptcy requires 24 months worth of acceptable payments have been made

Foreclosure
– Minimum 36 months seasoning from completion