The VA Center is where users can determine the eligibility of a selected VA loan product by completing the required questions. This section also contains fields that will be mapped to the VA Addendum disclosure that will accompany the VA loan disclosure package.
Table of Contents
- VA Center - Purchase Loans
- VA Center - Refinance Loans
The information that users will need to provide in the VA Center is determined by the loan type (purchase/refinance) and (if applicable) the refinance purpose (cash-out/better rate). This article provides instructions for completing the VA Center forms for each loan scenario to determine your borrower's eligibility for a selected VA loan product.
The VA Center is available from both the loan menu or the navigation bar only after a VA loan product has been selected and applied to the borrower's loan.
|Loan Menu - VA Center|
|Navigation Bar - VA Info|
When a VA loan product is applied to the borrower's loan, users must complete the forms in the VA Center for the appropriate loan scenario in order to determine whether the loan is VA eligible. If a user attempts to request disclosures before completing this step, or when the loan has been deemed ineligible, the following warning message will prompt users to navigate to VA Center to complete the worksheet or to Shop for Rates to select a different loan product.
VA Center - Purchase Loans
For purchase loans, the VA Center is organized into two separate tabs: VA General Info and VA Loan Analysis
VA General Info
This tab is used to provide important information about the the borrower's loan, their military service, and their occupancy plans for the subject property. The questions on the left portion of this page will will populate automatically with answers based on the information provided in the loan application, where applicable. Any fields that have not been populated, or that contain incorrect information, should be completed by the user.
The checkboxes on the right are used to indicate how the subject property will be occupied.
The Nearest Living Relative Information section is used to provide the name and contact information for the Veteran's nearest living relative.
When this tab is complete, a green checkmark will appear next to VA General Information
VA Loan Analysis
The VA Loan Analysis tab is used to document the details of the borrower's VA loan and their personal financial information in order to ensure that they meet the VA loan requirements.
This tab contains the following sections:
This section contains important information about the borrower's loan. This information is populated automatically based on the selected loan product and the information provided in the loan application - it cannot be edited on this page.
This section displays the borrower's Liquid Assets and their Current Monthly Housing Expenses. This information is pulled from the information provided in the loan application - it cannot be edited on this page.
New Monthly Housing Expenses
This section contains a breakdown of the borrower's projected monthly housing expenses under the terms of their new loan. Users can edit the Special Assessments field and the Maintenance & Utilities field.
Debts and Obligations
This section displays debts appearing on the borrower's credit report. Use the Income Deduction drop-down menu to indicate whether the respective debt should be subtracted from the borrower's income.
Monthly Income and Deductions
This section is used to calculate the borrower's net effective income to make sure they meet the eligibility criteria for the VA loan product. Use the fields in this section to enter deductions in income for the borrower and their spouse (if applicable). This section will then calculate the borrower's Total Net Effective Income (net take home pay - deductions) and their Balance Available for Family Support (net effective income - monthly housing expenses). The Balance Available for Family Support must meet or exceed the VA Minimum Residual Income. This bottom section also calculates the VA Ratio, the Housing Ratio, and the DTI Ratio.
The fields at the bottom of this section indicate whether the loan meets particular VA eligibility criteria.
VA Center - Refinance
For refinance loans, the tabs that appear differ between cash out and IRRRL loans.
Cash Out Loan
For a cash out refinance, first complete the VA General Information tab as described above.
Then navigate to the VA Loan Analysis tab and complete any necessary housing expenses or deductions to calculate the borrower's net effective income (see above)
The VA Cash-Out NTB tab is then used to compare the borrower's current loan to their new loan in order to verify that it meets the VA eligibility requirements.
Before information can be provided about the borrower's current loan in the VA Cash-Out NTB tab, the subject property must first be allocated to an REO record on the Credit tab in the loan application. To complete this step:
- Navigate to the Credit tab and select Add Real Estate
- In the REO Information flyout, open the Existing Address drop-down menu and select the subject property
- In this window, complete the required fields* and those in the right column that represent the terms for the current loan.
Once the subject property has been associated to an REO record, return to the VA Cash-Out NTB tab and complete the fields under the Loan Comparison - Current Loan column heading.
Then review the checkboxes under the Net Tangible Benefit heading and select all that apply.
After selecting applicable net tangible benefit checkboxes, enter the date that the first payment was made on the subject property under Seasoning Requirements. This date must be at least 210 days in the past and at least six monthly payment must have been made for the loan to be eligible.
When the above fields are complete, the VA Cash-Out Eligibility field displays an indicator designating whether the loan is eligible for the VA cash-out loan product.
Interest Rate Reduction Refinance Loan (IRRRL)
For a VA IRRRL loan, first complete the VA General Information as described above.
Then open the IRRRL QM Certification tab to review the Safe Harbor eligibility status. If the loan meets the Safe Harbor Requirements, a message and green checkmark will appear on the bottom right and next to the name of the tab.
An alternative message with a red checkmark will appear if the loan does not meet the Safe Harbor Requirements. Any specific parameters that fail the eligibility requirements will appear in red text.
The IRRRL Worksheet tab is then used to calculate the total maximum loan amount and ensure that the borrower's requested loan does not exceed this threshold. Complete the applicable fields on this tab and the system will display the eligibility status at the bottom of the page.