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A loss to VA does not need to be repaid; however, the Veteran’s previously used entitlement to guaranty the previous VA loan is not restored until the loss is paid in full.
Continued on next page 4-33 Continued from previous page 4-33 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 6: Debts Owed to the Federal Government, continued d.
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Borrower with Presently Delinquent Federal Debts, continued Each agency has their timeliness requirements before removing a non “A” CAVIRS finding.
This does not preclude the Veteran or borrower from receiving a VA loan if credit standards are met for VA loans.
See Topic 4.07b (13 and 14) of this Chapter for guidelines after a bankruptcy or foreclosure.
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Example: A borrower suffered a loss on a FHA loan home loan 2 years ago.
While HUD has not removed the CAIVRS finding as the 3-year waiting period has not passed for FHA, the lender is eligible to continue processing a VA loan without an “A” CAIVRS finding due to the borrower(s) meeting VA credit guidelines for foreclosures and documented in the loan file.
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CAIVRS information is only for the lender’s and borrower’s use in processing the loan application.
Only those persons having responsibility for screening borrowers and/or co- borrowers may use CAIVRS.
Any other use is unauthorized. e.
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Any other use is unauthorized. e.
Treatment of Federal Debts A borrower(s) cannot be considered a satisfactory credit risk if he or she is presently delinquent or in default on any debt to the Federal Government until the delinquent account has been brought current or satisfactory arrangement have been made between the borrower and the Federal agency.
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Example: A borrower has delinquent taxes and payments have not been made for several years.
The establishment of a payment plan after the CAVIRS finding has been addressed may not be sufficient to show a satisfactory payment arrangement to repay the obligation.
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72e22638-5877-4291-a35d-26ec114b1cef
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A borrower(s) cannot be considered a satisfactory credit risk if he or she has a judgment lien against his or her property for a debt owed to the Government until the judgment is paid or otherwise satisfied
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. 4-34 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 7: Credit History – Required Documentation and Analysis Change Date: July 27, 2023 · Subsection b has been updated to include guidance regarding medical collections and medical charge offs. · Subsection b has been updated to provide clarity regarding the monthly payment consideration for unpaid medical collection accounts. a.
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Credit Report Standards Credit Reports used in analyzing VA loans must be either Three-file Merged Credit Reports (MCR), or Residential Mortgage Credit Reports (RMCR).
The credit report must be less than 120-days old (180 days for new construction).
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For automatically closed loans and prior approval loans, the date of the credit report must be within 120 days of the date the note is signed (180 days for new construction).
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6f5b16b4-1554-44e2-a652-70e893aa5eb4
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If an RMCR is used, the standards applicable to a RMCR include, but are not limited to, the following: · The report must be prepared by a reputable credit reporting agency. · Each account with a balance must have been checked with the creditor within 90 days of the date of the credit report.
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For each debt listed, the report must provide the creditor’s name, date the account was opened, high credit, current status, required payment, unpaid balance, and payment history.
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The report must name at least two national repositories of credit records contacted for each location in which the borrower has resided during the most recent 2 years (separate repository inquiries are required for any co-borrowers with individual credit records).
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The report must include all available public records information that is not considered obsolete under the Fair Credit Reporting Act (15 U.
S.
C. § 1681) such as bankruptcies, judgments, law suits, foreclosures and tax liens.
The RMCR must be an original or electronic report, with no erasures, whiteouts, or alterations.
The report must contain a 24-month employment and residency history.
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VA may decline to accept a credit report which does not meet these standards.
If possible, the cost of the credit report must be listed on the credit report.
If not possible, an itemized invoice identifying the borrower(s) is required to verify the cost on the Closing Disclosure Statement (CD) when charging the borrower for the credit report.
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Continued on next page 4-35 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 7: Credit History – Required Documentation and Analysis, continued b.
How to Analyze Credit The borrower’s past repayment practices on obligations is the best indicator of his or her willingness to repay future obligations.
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Emphasis should be on the borrower’s overall payment patterns rather than isolated occurrences of unsatisfactory repayment.
Determine whether the borrower (and spouse, if applicable) is a satisfactory credit risk based on a careful analysis of the credit report and other credit data.
VA does not have a minimum credit score requirement.
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Rent and Mortgage Payment History The borrower’s most recent 24-month rental history and any outstanding, assumed, or recently retired mortgages must be verified and rated.
Housing expense payment history is often a primary indicator of how motivated the borrower is to make timely mortgage payments in the future.
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Absence of Credit History For borrower(s) with no established credit history, base the determination on the borrower’s payment record on alternative or nontraditional credit directly from the borrower or creditor in which a payment history can be verified.
Absence of a credit history is not generally considered an adverse factor.
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It may result when: · borrower(s) has not yet developed a credit history, · borrower(s) has routinely used cash rather than credit, and/or · borrower(s) has not used since some disruptive credit event such as bankruptcy or debt pro-ration through consumer credit counseling.
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Accounts in the Spouse’s Name See Topic 2, subsection c in this chapter for ECOA and consideration of the spouse’s credit history.
Adverse Credit Data In circumstances not involving bankruptcy, satisfactory credit is generally considered to be re-established after the borrower(s), have made satisfactory payments for 12 months after the date the last derogatory credit item was satisfied.
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If a credit report reveals numerous unpaid collections and/or accounts that are not being paid timely, including some which have been outstanding for many years, then once the borrower has satisfied the obligations, and then makes timely payments on subsequent obligations for at least 12 months, satisfactory credit is considered re-established.
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Continued on next page 4-36 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 7: Credit History – Required Documentation and Analysis, continued b.
How to Analyze Credit, continued Medical Collection and Charge-off Accounts Identifiable medical collections are collection accounts that are established when an overdue medical bill is referred to a collection agency.
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Charge-offs may occur when a creditor is no longer pursuing repayment of the medical debt.
Lenders may disregard all identifiable medical collections, including charge-off accounts, that have not been reduced to a judgment or lien.
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Identifiable medical collection accounts that have not been reduced to a judgment or lien do not have to be paid off as a condition for loan approval and should not impact the overall acceptability of a borrower's credit.
Lenders do not need to obtain explanations for medical collections or charge-offs and do not need to otherwise address such accounts.
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Non-medical Collection Accounts Isolated non-medical collection accounts do not necessarily have to be paid off as a condition for loan approval.
A credit report may show numerous satisfactory accounts and one or two unpaid collections.
In such instances, while it would be preferable to have collections paid, it would not necessarily be a requirement for loan approval.
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However, non-medical collection accounts must be considered part of the borrower’s overall credit history and such accounts should be considered open, recent credit.
These unpaid accounts must therefore be considered in the debt-to- income ratio and residual income calculation on VA Form 26-6393, Loan Analysis, and when using an Automated Underwriting System (AUS).
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If such accounts are listed on the credit report with a minimum payment, then the debt should be recognized at the minimum payment amount.
Non-medical collection accounts without established payment arrangements are to be included with a calculated monthly payment using 5% of the outstanding balance of the collection.
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Borrowers with a history of such accounts should have re-established satisfactory credit in order to be considered a satisfactory credit risk.
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While VA does not require such accounts be paid-off prior to closing if the borrower’s overall credit is acceptable, an underwriter must address the existence of the account(s) with an explanation on VA Form 26- 6393, Loan Analysis, and justify why positive factors outweigh the negative credit history such accounts represent.
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Charge -off Accounts These accounts are typically collections in which the creditor is no longer pursuing collection of the account.
The underwriter must address the circumstances regarding the negative credit history when reviewing the overall credit of the borrower(s).
This does not apply to identifiable medical charge-offs, as described above.
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Continued on next page 4-37 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 7: Credit History – Required Documentation and Analysis, continued b.
How to Analyze Credit, continued Disputed Accounts Lenders may consider a Veteran's claim of bona fide or legal defenses regarding unpaid debts except when the debt has been reduced to judgment.
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The underwriter should document the reason(s) for not considering an account on VA Form 26-6393, Loan Analysis.
Judgments Account balances reduced to judgment by a court must either be paid in full or subject to a repayment plan with a history of timely payments.
A history of timely payments would be generally considered as making 12 payments to reestablish credit.
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However, in certain cases when a judgment has only been in place for a few months, an underwriter could justify on VA Form 26-6393, Loan Analysis, a shorter repayment history if the documentation indicates the borrower immediately addressed the judgment after it was filed and began a repayment plan.
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Payoff of Unpaid or Untimely Debts For unpaid or debts that have not been paid timely, pay-off of these debts after the acceptability of a borrower's credit is questioned does not alter the unsatisfactory record of payment.
A period of making timely payments on subsequent obligations for at least 12 months, then satisfactory credit is considered re-established.
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Consumer Credit Counseling Plan If a borrower(s) has prior adverse credit and are participating in a Consumer Credit Counseling plan, they may be determined to be a satisfactory credit risk if they demonstrate 12 months’ satisfactory payments and the counseling agency approves the new credit.
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d8ed5c6b-77b4-4fba-b0bc-547eb96ee90d
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If a borrower(s) has good prior credit and are participating in a Consumer Credit Counseling plan, such participation is to be considered a neutral factor, or even a positive factor, in determining creditworthiness.
Do not treat this as a negative credit item if the borrower entered the Consumer Credit Counseling plan before reaching the point of having bad credit.
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d5ce25ce-175f-4688-8662-ab2c5d5ccf33
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Bankruptcy The fact that a bankruptcy exists in a borrower (or spouse’s) credit history does not in itself disqualify the loan.
Develop complete information on the facts and circumstances of the bankruptcy.
Consider the reasons for the bankruptcy and the type of bankruptcy filing.
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09c91b85-5cad-4168-8b71-751fa0eb9611
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Continued on next page 4-38 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 7: Credit History – Required Documentation and Analysis, continued b.
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How to Analyze Credit, continued Bankruptcy Filed Under the Straight Liquidation and Discharge Provisions of the Bankruptcy Law (Petition under Chapter 7 of the Bankruptcy Code): · If the bankruptcy was discharged more than 2 years ago from the date of closing for purchases and refinances, it may be disregarded
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. · If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that the borrower or spouse is a satisfactory credit risk unless both of the following requirements are met: Table 3: Requirements for Bankruptcies Discharged within the last 1 to 2 years Requirement Explanation 1 The borrower(s) had obtained consumer items on credit subsequent to the
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consumer items on credit subsequent to the bankruptcy and has satisfactorily made the payments over a continued period
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. 2 The bankruptcy was caused by circumstances beyond the control of the borrower or spouse such as unemployment, prolonged strikes, medical bills not covered by insurance, and so on, and the circumstances are verified.
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Divorce is not generally viewed as beyond the control of the borrower and/or spouse.
If the bankruptcy was discharged within the past 12 months, it will generally not be possible to determine that the borrower(s) is a satisfactory credit risk.
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917fe4ae-1311-43ea-960a-a20324e5a530
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If the bankruptcy was caused by failure of the business of a self-employed borrower, it may be possible to determine that the borrower is a satisfactory credit risk if all four of the following are met: Table 4: Requirements for Bankruptcies Caused by the Failure of a Self-Employed Borrower’s Business Requirement Explanation 1 The borrower obtained a permanent position after the business failed
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2e9f0eea-d20c-4d0b-a0be-4a6eef226da6
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. 2 There is not any derogatory credit information prior to the self- employment. 3 There is not any derogatory credit information subsequent to the bankruptcy. 4 Failure of the business was not due to the borrower’s misconduct.
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Continued on next page 4-39 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 7: Credit History – Required Documentation and Analysis, continued b.
How to Analyze Credit, continued Bankruptcy Petition Under Chapter 13 of the Bankruptcy Code This type of filing indicates an effort to pay creditors.
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509a2949-1216-4008-ab5f-10b633c82af7
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Regular payments are made to a court- appointed trustee over a 2 to 3-year period or, in some cases, up to 5 years, to pay off scaled down or entire debts.
If the borrower(s) has finished making all payments satisfactorily, the lender may conclude that the borrower has re-established satisfactory credit.
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If the borrowers) has satisfactorily made at least 12 months’ worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
Foreclosures The fact that a home loan foreclosure (or deed-in-lieu or short sale in lieu of foreclosure) exists in a borrower(s) history does not in itself disqualify the loan.
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Develop complete information on the facts and circumstances of the foreclosure.
You may disregard a foreclosure finalized more than 2 years from the date of closing.
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If the foreclosure was finalized within the last 1 to 2 years from the date of closing, it is probably not possible to determine that the borrower(s) is a satisfactory credit risk unless both of the following requirements are met: The borrower (s) has obtained consumer items on credit subsequent to the foreclosure and has satisfactorily made the payments over a continued period, and The
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the payments over a continued period, and The foreclosure was caused by circumstances beyond the control of the borrower (s) such as unemployment; prolonged strikes, medical bills not covered by insurance, and so on, and the circumstances are verified
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.
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If a foreclosure, deed in lieu, or short sale process is in conjunction with a bankruptcy, use the latest date of either the discharge of the bankruptcy or transfer of title for the home to establish the beginning date of re-established credit.
If there is a significant delay in the transfer of title, the lender should contact the RLC of jurisdiction for guidance.
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4755cf62-8b2b-4d5e-b144-317501ff96f7
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Deed in lieu or short sale For a deed in lieu or short sale, develop complete information on the facts and circumstances in which the borrowers) voluntarily surrendered the property.
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129aa54c-0477-4df2-8b1c-8677ab648843
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If the borrower’s payment history on the property was not affected before the short sale or deed in lieu and was voluntarily communicating with the servicer or holder, then a waiting period from the date transfer of the property may not be necessary.
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4e312cc5-fe79-4043-b0a7-6f55ed660c68
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If the foreclosure, deed and lieu or short sale was on a VA-guaranteed loan, then a borrower may not have full entitlement available for the new VA loan.
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28963b46-4948-4d65-b75a-3c634b7391a4
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Ensure that the borrower’s COE reflects sufficient entitlement to meet any secondary marketing requirements of the lender. 4-40 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS) Change Date: February 22, 2019 · This chapter has been revised in its entirety. a.
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3b519e99-d1cb-4b72-a82a-d19883859ec6
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General AUS Information VA has approved Freddie Mac’s Loan Prospector, Fannie Mae’s Desktop Underwriter, and VA approved proprietary lender AUS systems to use in connection with VA-guaranteed home loans.
These systems incorporate VA’s credit standards and processing requirements.
Lenders may use certain reduced documentation requirements on cases processed with approved AUS.
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The level of reduced documentation depends on the risk classification assigned.
The systems use different terminology such as Approve or Accept.
The tables in this section give a general description of documentation waivers.
Please note that the documentation requirements are the same for these cases as for non-AUS cases, except for any differences cited in the tables.
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aba81baf-e3ef-4a06-b9a2-3726ebb79c4a
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The automated systems do not approve or disapprove loans.
They merely determine a risk classification.
It is still the lenders underwriter’s decision whether or not to approve the loan.
Although VA has approved the use of these systems, we are not the vendor.
The terms and conditions of use must be negotiated directly with the provider of these systems.
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It is imperative that the data entered into the automated underwriting system be accurately verified.
The data utilized by the system must be supported by source documentation obtained by the lender.
Inaccurate or unverified data will result in invalidation of the risk classification.
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d01bf0fc-b9ae-48e9-9fe2-6fe08d3c53b0
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Under certain circumstances, it could also result in a finding of material misrepresentation, which could affect the validity of the guaranty. b.
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4bd8843e-6a8b-43fc-b4aa-bfed36c81c69
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Underwriter’s Certification Because the AUS will be making the determination that the loan satisfies credit and income requirements, cases receiving an “Accept” or “Approve” rating will not require the underwriter’s signature on VA Form 26-6393, Loan Analysis (items 49 through 53).
However, the file must still contain the Lender’s Certification referenced in Chapter 5 of the VA Lender’s Handbook.
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9451bf57-e769-44a8-ba6d-b4e0a7be5df2
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Continued on next page 4-41 Continued from previous page 4-41 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS), continued c.
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dbb33f8a-ed91-40e5-8877-3e206106ba00
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Documentation Guidelines for Credit History Refer to the following table for documentation guidelines for credit history: Table 5: Documentation Guidelines for Credit History Subject and Documentation Guidelines Documentation Reductions Reference and Reductions for Refer for Accept/Approve Types of credit Use any of the following if Same as Refer
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8d7b7bd8-1402-459b-882c-2a9a84739b8c
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. reports used in ≤120 or 180-days old reconciliation (Topic (existing/new constructions): 7 of this chapter) All in-file reports, Selected in- file reports, Merged credit report, or RMCR Explanation of No explanation is required.
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93db94ed-94e0-4c91-8310-a3595781aa1a
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Same as Refer. discrepancies in reported debt (Topic 5 of this chapter) Rental payment Provide a 24 month rental No verification of rent is history (Topic 7 of history directly from the required. this chapter) landlord, through information shown on credit report or by cancelled checks Verification of Obtain direct verification for Same as Refer
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32ce4401-dcaf-4f32-9011-921b30af24d5
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. significant non- significant debts not reported on Note: Perform manual mortgage debt (Topic the credit report. downgrade to Refer if direct 5 of this chapter) Note: Significant means that verification reveals more than 1 the debt has a monthly payment by 30 day late payment in the exceeding 2 percent of the past 12 months for any of the stable monthly income for all omitted debts. borrowers.
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942dfcb9-ec16-4625-9efd-b95c60da8c70
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Continued on next page 4-42 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS), continued c.
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8a23868d-86cd-455f-803a-b7f78dca72f3
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Documentation Guidelines for Credit History, continued Table 5: Documentation Guidelines for Credit History, continued Subject and Documentation Guidelines Documentation Reductions Reference and Reductions for Refer for Accept/Approve Mortgage payment Obtain direct verification when Perform manual downgrade to history (Topic 7 of ratings are not available on Refer for any mortgage debt this
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not available on Refer for any mortgage debt this chapter) mortgages that are any of the with more than 1 by 30 day late following: payment in the past 12 months
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1ef146e6-7a85-419e-a606-51c853bee51e
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. · Outstanding, · Assumed, or · Recently retired.
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4f6f907e-d89d-411b-823a-7560a8ce0f89
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A written explanation of mortgage payment history is required for borrowers with more than 1 by 30 day late payment for all mortgages for the past 12 months.
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f00c2376-19df-45a1-abe6-f10d6da0512e
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Account balances If a mortgage or other Same as Refer, however if (Topic 7 of this significant debt is listed on the rating is currently ≥90 days past chapter) credit report as past due and due, manually downgrade to was last updated ≥90 days, Refer. verify current status of past due debt.
Derogatory credit Obtain explanation for No determination of information (Topic 7 derogatory credit.
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3894869a-4c0a-4178-80e6-928d0176e92a
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Explain creditworthiness is required. of this chapter) assessment of creditworthiness on VA Form 26-6393, Loan Analysis Alimony and/or child Provide the following: Same as Refer
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64ece608-e021-4aa1-9a52-61ee9d0ecc35
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. support payments · Proof of deposits on bank (Topic 2 of this statements for 3 months, chapter) and · Front page and details of support payments from the divorce decree, indicating evidence of at least 3 years continuance.
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6d96eb7f-a4c1-4d98-96ed-c4746b8d483e
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Continued on next page 4-43 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS), continued c.
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VA_Guidelines.txt
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c2962bdc-b85f-41f4-b7a2-f66c766aa03b
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Documentation Guidelines for Credit History, continued Table 5: Documentation Guidelines for Credit History, continued Subject and Documentation Guidelines Documentation Reductions Reference and Reductions for Refer for Accept/Approve Mortgage payment Obtain direct verification when Perform manual downgrade to history (Topic 7 of ratings are not available on Refer for any mortgage debt this
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VA_Guidelines.txt
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6944f708-834f-4976-aa32-c593c4684ca8
|
not available on Refer for any mortgage debt this chapter) mortgages that are any of the with more than 1 by 30 day late following: payment in the past 12 months
|
VA_Guidelines.txt
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e4ef9d57-3be3-4a36-970e-376a6df61391
|
. · Outstanding, · Assumed, or · Recently retired.
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VA_Guidelines.txt
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0f531b3f-de75-4c20-843d-1415a008f8dd
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A written explanation of mortgage payment history is required for borrowers with more than 1 by 30 day late payment for all mortgages for the past 12 months.
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VA_Guidelines.txt
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38eebd8d-f2bc-4bdc-838b-7a3da15b4528
|
Account balances If a mortgage or other Same as Refer, however if (Topic 7 of this significant debt is listed on the rating is currently ≥90 days past chapter) credit report as past due and due, manually downgrade to was last updated ≥90 days, Refer. verify current status of past due debt.
Derogatory credit Obtain explanation for No determination of information (Topic 7 derogatory credit.
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VA_Guidelines.txt
|
7a5ddaeb-bd13-4122-ba60-ee8e217700a8
|
Explain creditworthiness is required. of this chapter) assessment of creditworthiness on VA Form 26-6393, Loan Analysis Alimony and/or child Provide the following: Same as Refer
|
VA_Guidelines.txt
|
3e5570c8-3c04-4483-a003-e2d687651e7d
|
. support payments · Proof of deposits on bank (Topic 2 of this statements for 3 months, chapter) and · Front page and details of support payments from the divorce decree, indicating evidence of at least 3 years continuance.
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VA_Guidelines.txt
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a46fcdde-271a-41ed-8c52-089fc6eff774
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Continued on next page 4-43 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS), continued d.
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VA_Guidelines.txt
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15e6af43-22a8-4575-b581-03183d01d764
|
Documentation Guidelines for Borrower(s) Not Self-Employed Refer to the following table for documentation guidelines for employment/income for borrower(s) who are not self-employed: Table 6: Documentation Guidelines for Borrower(s) Not Self-Employed Subject and Documentation Guidelines Documentation Reductions Reference and Reductions for Refer for Accept/Approve Employment gaps No explanation
|
VA_Guidelines.txt
|
2fa33f6d-9a05-495b-8c11-5e1444b88cdd
|
for Accept/Approve Employment gaps No explanation for employment No explanation for employment (Topic 2 of this gaps is required if the gaps are gaps is required if gaps are ˂60 chapter) ˂30 days
|
VA_Guidelines.txt
|
7288605a-41ee-4dfd-aaa1-d6312c6cf346
|
. days.
|
VA_Guidelines.txt
|
517712f0-4eb1-4611-8d85-f798d739cda2
|
Verifying current Document telephone contact Same as Refer. employment for verifying borrower’s current borrowers who are not employer. self-employed (Topic Use pay stubs covering at least 2 of this chapter) 1 full month of employment and contains the following: · Year-to-Date (YTD) information, · Bonus information, and · Overtime information.
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VA_Guidelines.txt
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e5cea6fc-7dc6-4f46-9c9a-0e101fc0e745
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Continued on next page 4-44 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS), continued d.
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VA_Guidelines.txt
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236138b5-fdfd-4b34-b4b0-6ca4b435852e
|
Documentation Guidelines for Borrower(s) Not Self-Employed, continued Table 6: Documentation Guidelines for Borrower(s) Not Self-Employed, continued Subject and Documentation Guidelines Documentation Reductions Reference and Reductions for Refer for Accept/Approve Verifying previous Use a VOE or any of the No VOE is required if the employment (Topic 2 following, covering the 2-year borrower has
|
VA_Guidelines.txt
|
9dd07d80-30cf-40b4-9f88-983ecbd22806
|
2 following, covering the 2-year borrower has been with the of this chapter) period prior to closing: same employer for 1 year and · W-2 Forms, or W-2 Forms for 1 previous year · Income information have been collected
|
VA_Guidelines.txt
|
fa4fe0d1-92b5-4926-9e1d-58c9ef127297
|
. obtained from the IRS via No W-2 Forms are required for one of the following a borrower on active duty
|
VA_Guidelines.txt
|
806fe635-008d-495d-a1d5-b275f84e8e5e
|
. forms: No W-2 Forms are required if □ Form 8821, Tax all of the following are met: Information Authorization, (or · Borrower is with the alternate form same employer >2 years acceptable to the · Employer phone contact IRS that collects verifies the length of comparable employment and current □ information) or status (still employed) Form 4506, Request · Borrower is not self- for Copy of Tax
|
VA_Guidelines.txt
|
ca978544-923c-42ad-a5a8-504419e598d4
|
Request · Borrower is not self- for Copy of Tax employed or Return, (or alternate commissioned form acceptable to · Bonus, overtime, or the IRS that collects secondary income is not comparable needed to qualify information)
|
VA_Guidelines.txt
|
674cce4f-2176-4a77-a4e6-dc3721ef095f
|
. · No VOE or W-2 Forms are · Stable monthly income is required for a borrower on to be determined by using active duty. current base pay only · The Leave and Earning (rather than total Statement (LES) should be · earnings) used.
|
VA_Guidelines.txt
|
7901067b-97db-4f68-899d-9956c80fa491
|
Borrower signs one of the following for the previous 2 tax years: □ Form 8821, and □ Form 4506.
Continued on next page 4-45 VA Lenders Handbook M26-7 Chapter 4: Credit Underwriting Topic 8: Automated Underwriting Cases (AUS), continued e.
|
VA_Guidelines.txt
|
4be4b190-c8af-474b-98dd-5065f2205263
|
Documentation Guidelines for Borrower(s) Self-Employed Refer to the following table for documentation guidelines for employment/income for borrower(s) who are self-employed: Table 7: Documentation Guidelines for Borrower(s) who are Self-Employed Subject and Documentation Guidelines Documentation Reductions Reference and Reductions for Refer for Accept/Approve Individual tax returns Provide one of
|
VA_Guidelines.txt
|
11c3952b-2af2-4069-85db-160a0a22dc60
|
Individual tax returns Provide one of the following, Same as Refer
|
VA_Guidelines.txt
|
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