Mitchell6024/quickb · Datasets at Hugging Face

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59e33a7b-68b7-4eef-9fb2-b3b49d6b5768	Please fax a copy of VA Form 26-8937 to the RLC of jurisdiction. · For COEs with a “non-exempt” status, the following “conditions” may appear: □ Funding Fee – Veteran is not exempt from the funding fee. □ Funding Fee – Veteran is not exempt from the funding fee due to receipt of non- service-connected pension.	VA_Guidelines.txt
341b2c78-ed55-40fb-be11-230cbb463555	Loan application will require prior approval processing by VA. · For COEs with “contact RLC” status, the following “condition” will appear: □ Funding Fee – Please fax a copy of VA Form 26-8937 to the RLC of jurisdiction of where the property is located. d. IRRRL Exemption Status The funding fee exemption status on IRRRLs is displayed in WebLGY at the time the case number is ordered. e.	VA_Guidelines.txt
a5db52ec-b038-4dea-b5df-8e9f32ae0410	Exempt Status and Verified Income Lenders may rely on the “exempt” status appearing next to the “funding fee” field for verification of the funding fee exemption. If the dollar amount is different than what is shown on the COE, use the most recent bank statement or award disability award letter for verification.	VA_Guidelines.txt
22eed010-e1e2-443b-b447-7956147fd3e7	Additionally, on COEs with an “exempt” status, lenders may treat any service- connected disability income amount appearing in the “condition” section of the COE as verified income. There is no need to fax in VA Form 26-8937 to confirm the status or amount showing on the COE.	VA_Guidelines.txt
95ca8e6b-c1b7-4885-9e3f-b5f53e4c7577	Continued on next page 2-5 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 2: What the Certificate of Eligibility Tells the Lender, continued f. Additional Conditions Listed on Some COE Forms Additional conditions that the lender and Veteran must comply with are listed on the COE, under the conditions heading.	VA_Guidelines.txt
0f361c12-32e5-4fbb-9437-aab7e3674c55	The following table provides the actions a lender should take for each condition, if applicable: Table 1: Additional COE Conditions Condition What to Do Valid unless discharged or released Ensure the Veteran is still on active duty before subsequent to the date of this certificate. closing the loan.	VA_Guidelines.txt
4ffc2237-ef8a-49ad-be92-f514372d6750	If the Veteran is discharged or A certification of continuous active duty released prior to loan closing, request a new as of the date of note is required. COE and do not close the loan until received.	VA_Guidelines.txt
c471cb54-a727-407c-9e41-57ff7bab350e	Excluded entitlement previously used If the entitlement used for the prior loan for a VA LIN as shown herein is identified in this condition is needed for the available only for use in connection with proposed loan, ensure the proposed loan will be the property that secured that loan. secured by the same property as the prior loan. (Cash-out refinance on a prior VA loan	VA_Guidelines.txt
dd3f6ae2-212f-41c0-b004-50741f794558	. (Cash-out refinance on a prior VA loan.) Entitlement previously used for a VA The Veteran must have proof that all properties LIN has been restored without disposal with VA-guaranteed loans have been disposed. of the property, under provision of 38 U.	VA_Guidelines.txt
ccca157b-541e-4924-915a-0afc8dd09fad	S. C. 3702(b)(4). Any future restoration requires disposal of all property or properties obtained with a VA loan. The Veteran is not exempt from the Non service-connected pension must be funding fee due to receipt of non submitted to VA for prior approval. service-connected pension.	VA_Guidelines.txt
b42edb67-8423-43a8-b7e3-5f803d5911eb	Loan Concurrence is required from Pension Service, application will require prior approval so allow extra time for processing. processing by VA. Funding Fee – Please fax a copy of VA The Veteran has a fiduciary and the loan must Form 26-8937 to the RLC of be submitted to VA for prior approval. jurisdiction.	VA_Guidelines.txt
df3f2b5d-a24a-4a21-a29a-6dfb6281afe2	Please have the lender Concurrence is required from Fiduciary contact the RLC for loan processing. g.	VA_Guidelines.txt
e52b5eaa-1ab7-4b82-a708-e5457a9fbb8d	The “Subsequent Use Funding Fee” Condition The “Subsequent Use Funding Fee” indicates the Veteran has used their home loan benefit before, so a higher funding fee is required. 2-6 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 4: Proof of Service Requirements Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.	VA_Guidelines.txt
84c3ecaa-d20f-441b-8241-54490fa31ecc	Discharged Veterans (Regular Military) The DD214 Form, Certificate of Release or Discharge From Active Duty, will generally contain all the information needed for VA to make an eligibility determination for persons who served on active duty of a regular component of the Armed Forces.	VA_Guidelines.txt
56068086-39c8-43b3-b687-51b84b7fd5b6	The regular Armed Forces include active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard. · VA will accept legible copies of the DD214 Form. · Veterans separated after October 1, 1979, should furnish Member Copy 2, 4, 8, or any copy of a DD214 Form that includes the COS and the narrative reason for separation.	VA_Guidelines.txt
81b58bc7-4b7c-4af3-a738-7dd0ac29be85	Veterans separated from military service after January 1, 1950, should have received DD214 Form. Veterans separated from active duty before January 1, 1950, received documentation other than DD214 Form. To be acceptable, it should indicate: □ LOS, and □ COS b.	VA_Guidelines.txt
32df4963-0d16-4013-a31f-5ae41626d21c	Veterans Still on Active Duty Proof of service for Veterans on active duty is a Statement of Service (SOS) signed by, or by the direction of, the adjutant, personnel office, or commander of the unit or higher headquarters they are attached to. There is no one unique form used by the military for an SOS.	VA_Guidelines.txt
8fbb5239-d8a6-421e-9473-eb137c900329	While an SOS is typically on military letterhead, it may also be electronic and both are acceptable. The SOS must clearly show the: · Veteran’s full name, · social Security Number (SSN) or the last 4 digits of the SSN, · entry date on active duty, · duration of lost time, if any, and · name and point of contact for the command or unit.	VA_Guidelines.txt
f6028e04-ff00-4939-bf26-728e3f137c49	Continued on next page 2-8 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 4: Proof of Service Requirements, continued c. Discharged Reserve/Guard Members There is no one form used by the Reserves or National Guard that is similar to DD214 Form.	VA_Guidelines.txt
bfb18f6d-604b-42b0-8ac0-5275dfd7f789	Selected Reserve describes a member or unit with the Ready Reserve designated by their respective services and approved by the Joint Chiefs of Staff as so essential to initial wartime missions that they have priority over all other reserves. The National Guard is a unique element of the U. S. Military that serves both community and country.	VA_Guidelines.txt
afc60e66-c3d6-4589-a38f-e4426f472192	Military that serves both community and country. Any state governor or the President of the United States can call on the Guard in a moment’s notice. Discharged members of the Army or Air National Guard may submit NGB Form 22, Report of Separation and Record of Service, and NGB Form 23B, Retirement Points Summary Statement, with the COS document.	VA_Guidelines.txt
9d6d26c2-1f30-4a4d-938d-ba948ee01662	Members of the Reserves should submit their points statement with COS. Typically, all members of the Reserves and/or Guard receive an annual retirement points summary which indicates the level and length of participation. The applicant should submit the latest retirement point statement received, along with evidence of honorable service. VA will accept legible copies. d.	VA_Guidelines.txt
48f36c56-3dcb-4b10-bc6f-b5ee32f93a17	VA will accept legible copies. d. Current Reserve/Guard Members Individuals who are still members of the Reserves/National Guard must provide an SOS signed by, or by the direction of, the adjutant, personnel office, or commander of the unit or higher headquarters they are attached to. There is no one form used uniformly by the military for an SOS.	VA_Guidelines.txt
9dd0be40-eae9-4665-bcb1-5c23b793fb9d	While an SOS is typically on military letterhead, some may be electronic and both are acceptable. The statement of service must clearly show the: · Veteran’s full name, · the SSN or the last 4 digits of the SSN, · entry date of the applicant’s Reserve/Guard duty, and · the unit must state the creditable (actually drilled) years served in the Reserves or the National Guard.	VA_Guidelines.txt
082ca69a-de7d-4f46-8878-d6b90cc43f02	If called to active duty, a copy of the orders must accompany the SOS with the name and point of contact for the command or unit. The statement must clearly indicate that the applicant is an “active” reservist or National Guard member and not just in a control group (inactive status).	VA_Guidelines.txt
f8e16b20-da26-46db-9abf-3b664eff226a	If Veterans cannot locate proof of service, they can request military documents either through the National Archives, http://www.ebenefits.va.gov/, or by completing SF- 180, Request Pertaining to Military Records. The completed form should be submitted to the appropriate address shown. It should not be sent to VA.	VA_Guidelines.txt
d02a0d21-4a3e-4783-82be-3d79c2515482	It should not be sent to VA. In many cases, VA internal systems will have sufficient information to make the eligibility determination for those who served on active duty.	VA_Guidelines.txt
fbc31121-4dc2-4080-b6e5-86c9e8a9c779	Lenders and Veterans should not delay requesting a COE pending receipt of requested military documents. 2-9 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 5: Basic Eligibility Requirements Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.	VA_Guidelines.txt
f5468fd0-1892-4289-8d5a-341be4a42c56	General Rule for Eligibility A Veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940, and was discharged under conditions other than dishonorable after either: · 90 days or more, any part of which occurred during wartime, or · 181 continuous days or more (peacetime). b.	VA_Guidelines.txt
47bdcb12-c002-4a84-9da8-d281ebcf1d14	The 2-Year Requirement A greater length of service is required for Veterans who: · enlisted (and service began) after September 7, 1980, or · entered service as an officer after October 16, 1981 These Veterans must have completed either: · 24-continuous months of active duty, or · the full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or	VA_Guidelines.txt
37d46891-6551-4f9c-938c-73319fa65380	less than 90 days (any part during wartime) or 181 continuous days (peacetime)	VA_Guidelines.txt
6892eef1-4b09-418f-90fb-84bb75848541	.	VA_Guidelines.txt
93513470-f86c-4568-9296-8dd6a2fa6af3	Cases involving other than honorable discharges will usually require further development by the VA Compensation Department. This is necessary to determine if the service was under other than dishonorable conditions. c.	VA_Guidelines.txt
876c40ad-4d8d-46bc-afab-9b435408b6b2	Wartime and Peacetime Refer to the Following Periods of Service Table 2: Wartime and Peacetime Eras Wartime Peacetime World War II 9/16/1940 - 7/25/1947 Post World War II period 7/26/1947 - 6/26/1950 Korean conflict 6/27/1950 - 1/31/1955 Post Korean period 2/1/1955 - 8/4/1964 Vietnam era 8/5/64 - 5/7/1975 Post Vietnam period 5/8/1975 - 8/1/1990 (The Vietnam era begins 2/28/1961 for those	VA_Guidelines.txt
c2d827d2-5689-400d-9059-34ef300595a1	(The Vietnam era begins 2/28/1961 for those individuals who served in the Republic of Vietnam	VA_Guidelines.txt
0fe1be31-31ea-4b00-8731-04b4032926ca	.) Persian Gulf War 8/2/1990 - date to be determined Continued on next page 2-10 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 5: Basic Eligibility Requirements, continued d.	VA_Guidelines.txt
c6661f7a-5e27-4ee3-980f-3755ac488143	Eligibility for Reserves and/or Guard Members of the Reserves and National Guard who are not otherwise eligible for loan guaranty benefits are eligible upon completion of 6 years of service in an active or drilling status in the Reserves or Guard (unless released earlier specifically for a service-connected disability). The applicant must have received an honorable character of discharge.	VA_Guidelines.txt
1da65fe5-f2e6-412f-aba8-f7421a423224	A general or under honorable conditions discharge is not a qualifying or acceptable character of discharge. Service in the Individual Ready Reserve or Control Group (inactive status) is not qualifying length of service for the home loan program. e. Basic Eligibility Table The table below provides a quick reference to some of the most commonly eligible Veterans. This table is not exhaustive.	VA_Guidelines.txt
382b2f33-6842-4e5b-af7b-edb103575246	This table is not exhaustive. A Veteran’s eligibility for home loan benefits may only be determined by VA. f. Eligibility of Spouses of Veterans Some spouses of Veterans may have home loan eligibility.	VA_Guidelines.txt
9dc662ac-95bd-4cef-91e4-ead91edfaf02	They are the: · unmarried surviving spouse of a Veteran, who died as a result of service or service- connected causes, · surviving spouse of a Veteran who dies on active duty or from service-connected causes, who remarries on or after age 57 and on or after December 16, 2003, and · spouse of an active duty member who is listed as MIA or a POW for at least 90 days.	VA_Guidelines.txt
9c08e758-4c20-4828-b0be-886be0cee1d2	Eligibility under this MIA/POW provision is limited to one-time use only. · surviving spouses of Veterans who died from non service-connected causes may also be eligible if certain conditions are met. Those conditions are found in Topic 3, subsection b(1), of this chapter. · surviving spouse who is eligible for or in receipt of certain types of Dependency Indemnity Compensation (DIC). g.	VA_Guidelines.txt
664611dd-5e8d-4ecc-8bbd-a1412860f97d	Additional Eligibility The table below provides a quick reference to some additional types of eligible Veterans. This table is not exhaustive. A Veteran’s eligibility for home loan benefits may only be determined by VA. h.	VA_Guidelines.txt
da41bf63-9391-4356-ad66-54d4f74c9eab	Other Qualifying Service Congress has periodically granted Veteran status to groups other than members of the Army, Air Force, Navy, Marine Corps, and Coast Guard, such as certain members of the Public Health Service, and cadets at the service academies. Lenders should contact one of the RLCs for assistance when one of these unique cases is encountered.	VA_Guidelines.txt
2801a1a9-f20b-4ccd-9847-11805c81cc57	Continued on next page 2-11 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 5: Basic Eligibility Requirements, continued i. Exceptions to LOS There are numerous exceptions to the LOS requirements outlined in this section.	VA_Guidelines.txt
7c9bb519-2eb2-44aa-a21f-da739b4ecf72	For example, 1 day of service is sufficient for an individual who is discharged or released from service (regular active duty or Reserve/National Guard) due to a service-connected disability which would be listed on the discharge paperwork. Because of the complexity and number of exceptions, this chapter does not attempt to cover all of them.	VA_Guidelines.txt
fee75b54-ecb9-49a0-8e3a-28da38080ca3	Because there are exceptions, lenders should not assume a Veteran is not eligible. Instead, they should create an application and allow VA to make a formal determination of eligibility. j. When a COE is Denied The table below provides a quick reference to some additional types of eligible Veterans. This table is not exhaustive.	VA_Guidelines.txt
f2aad519-3928-4ccf-b423-a0805292604e	This table is not exhaustive. A Veteran’s eligibility for home loan benefits may only be determined by VA. 2-12 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 6: Restoration of Previously Used Entitlement Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.	VA_Guidelines.txt
9aad55c5-9105-4dbf-be07-d3af12a6d9d4	Basic Restoration Entitlement previously used in connection with a VA home loan may be restored under certain circumstances. Once restored, it can be used again for another VA loan.	VA_Guidelines.txt
1e187627-c985-4ef7-b57e-9c5d59aee6b6	Restoration of previously used entitlement is possible if: · property which secured the VA-guaranteed loan has been sold, and the loan has been paid in full; or · eligible Veteran-transferee has agreed to assume the outstanding balance on a VA loan and substitute his or her entitlement for the same amount originally used on the loan.	VA_Guidelines.txt
f760fde6-9c1c-405d-96e8-552773516704	The assuming Veteran, substituting his/her entitlement, must also meet occupancy, income, and credit requirements. This should be completed before requesting the Loan Guaranty Certificate in WebLGY, on the new loan. b.	VA_Guidelines.txt
d73e28ca-3b44-49df-b92d-503415d9bb19	Special Restoration Cases In addition to the basic restoration criteria outlined above, a Veteran may obtain restoration of the entitlement used on a prior VA loan under any of the following circumstances: · Regular “cash-out” refinance where the prior VA loan has been paid in full and the Veteran has made application for a refinance loan to be secured by the same property which secured the prior	VA_Guidelines.txt
b3f16846-a894-4bde-8459-877a80a93016	by the same property which secured the prior VA loan	VA_Guidelines.txt
c9e6a619-500e-4e97-92de-afc6d3260b4a	.	VA_Guidelines.txt
ad187026-5503-4545-9da0-27f119614060	This includes refinancing situations, in which the prior loan will be paid off at closing from a VA refinancing loan on the same property, or · One –time restoration where the prior VA loan has been paid in full, but the Veteran has not disposed of the property securing the loan.	VA_Guidelines.txt
0e4cb265-1a7b-46ae-862b-af7978c1712a	The Veteran may obtain restoration of the entitlement used on the prior loan in order to purchase a different property, one time only. Once such restoration is used, the Veteran’s COE will indicate the one-time restoration. The COE will also advise that any future restoration (purchase or cash-out refinance) will require disposal of all property or properties obtained with a VA loan. Example.	VA_Guidelines.txt
8e5ffa33-4b1a-4188-bba7-566fdaf9bb98	Example. A Veteran used all his entitlement to purchase a home for $453,100 in a non-high cost county in Maryland. Prior to job relocation to GA, he refinanced the loan to a non-VA loan. The loan was paid in full; however, he still owned the property. He now wants to purchase a home in GA and applies for a one-time restoration. This is possible.	VA_Guidelines.txt
42d97a04-7105-4070-ac2a-7c7fd923d08b	If the Veteran wants to use the benefit in the future for another purchase or regular “cash- out” refinancing, both properties would have to be disposed of before entitlement can be restored. 2-13 2-13 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 7: Misuse of Veteran’s Entitlement Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.	VA_Guidelines.txt
6da524b4-58a8-4b9f-a576-5ff3527cda41	What Constitutes Misuse? A basic requirement of the law governing the VA home loan program is that the Veteran has a bona fide intention of occupying his or her property as a home. Home loan entitlement is not being used properly if the Veteran arranges to sell or convey the property to a third party prior to closing the loan. b. What to Do?	VA_Guidelines.txt
a1a7cce8-fa60-4e47-9818-64fa09c21ad0	Contact the VA RLC with jurisdiction over the property for advice regarding any case in which there may be a question regarding the legality of entitlement use	VA_Guidelines.txt
e2802b67-fd9f-465d-8963-e5706d8980f1	. 2-14 CHAPTER 3: The VA Loan and Guaranty Overview Topic Title Page 1 Basic Elements of a VA-Guaranteed Loan 3-2 2 Eligible Loan Purposes 3-4 3 Maximum Loan Amount 3-6 4 Maximum Guaranty on VA Loans 3-9 5 Occupancy 3-11 6 Interest Rates 3-14 7 Discount Points 3-15 8 Maturity 3-17 9 Amortization 3-18 10 Eligible Geographic Locations for the Secured Property 3-19 11 What Does a VA Guaranty Mean to	VA_Guidelines.txt
b4fb71c7-3511-4b7e-9d0c-4cc9734c37d2	Property 3-19 11 What Does a VA Guaranty Mean to the Lender	VA_Guidelines.txt
b4dfdd98-116b-41ef-af8a-5e55d60a62ec	? 3-20 12 Post-Guaranty Issues 3-23 3-1 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 1: Basic Elements of a VA-Guaranteed Loan, continued a	VA_Guidelines.txt
10d5b9ce-a391-468a-ae05-fdd91f8cda81	.	VA_Guidelines.txt
13b2efe6-4840-4610-886a-6cbcc45e45e4	General Rules, continued Table 1: General Rules Regarding VA-Guaranteed Loans, continued Subject Explanation Section Underwriting Flexible standards.	VA_Guidelines.txt
7f8886c8-5916-447f-ae8e-dde638069637	The Veteran must have: Chapter 4 · satisfactory credit, and · satisfactory repayment ability □ stable income, □ residual income (net effective income minus monthly shelter expense) in accordance with regional tables, and □ acceptable ratio of total monthly debt payments to gross monthly income (ratios exceeding 41% requires closer scrutiny and compensating factors).	VA_Guidelines.txt
53fd0e72-2c80-42b3-8c4e-1b9f91864c9e	IRRRL Used to refinance an existing VA loan at a lower interest Chapter 6 (Streamline rate. Refinancing · no appraisal or underwriting is required, Loans) · closing costs may be financed in the loan, · reasonable discount points can be charged, but only two discount points can be financed in the loan, and · no cash to the borrower.	VA_Guidelines.txt
dccb2f46-dece-44d3-8362-a485604b5e24	Note: A fixed rate loan to refinance a VA Adjustable Rate Mortgage (ARM) may be at a higher interest rate.	VA_Guidelines.txt
69e3df47-64aa-4e49-a90d-c96beb16967b	Funding Fee The Veteran, unless exempt, must pay a funding fee to help Chapter 8 defray costs of the VA Home Loan program. · find the percentage appropriate to the Veteran’s particular circumstances on the funding fee table, and · apply this percentage to the loan amount to arrive at the funding fee. The funding fee may always be financed in the loan.	VA_Guidelines.txt
41187217-7ea2-422d-9ae9-5b32c35f7b87	Note: for cash-out refinance loans, the loan amount, including the funding fee, may not exceed 100% of the reasonable value as determined by VA.	VA_Guidelines.txt
b4f2b45a-fde3-4791-9f7f-8d231772ce46	Closing Costs Those payable by the Veteran are limited by regulation to a Chapter 8 specific list of items plus a one percent flat charge by the lender. · Any other party, including the seller, can pay any costs on behalf of the Veteran. (Subject to concession limits). · Closing costs cannot be financed in the loan except on certain refinancing loans. (See chapter 8	VA_Guidelines.txt
b6158a99-56c5-4b3c-b9f4-e1002ab1dbc6	. (See chapter 8.) Security The lender may use any note or mortgage forms they wish Chapter 9 Instruments as long as they contain certain VA-required clauses. 3-3 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 2: Eligible Loan Purposes Change Date: May 14, 2024 · This topic has been updated to make minor grammatical edits	VA_Guidelines.txt
88f4ef2e-f6ca-4809-adfd-43692bc471e7	. · Section a has been updated to include an eligible loan purpose: refinancing of contracts for deed. · Section c has been updated to indicate that Veterans may receive cash back for amounts credited for prorated taxes paid in arrears. a.	VA_Guidelines.txt
98677dc6-3c1d-4cc2-8bf6-3807a98cb4da	List of Eligible Loan Purposes The law authorizes VA to guarantee loans made to eligible Veterans only for the following purposes: · Purchase or construct a residence, including a condominium unit to be owned and occupied by the Veteran as a home: □ the loan may include simultaneous purchase of the land on which the residence is situated or will be situated, □ loans may also be guaranteed for the	VA_Guidelines.txt
0f744c69-abd0-4536-b9e6-27cbab77f8f6	situated, □ loans may also be guaranteed for the construction of a residence on land already owned by the Veteran (a portion of the loan may be used to refinance a purchase money mortgage or sales contract for the purchase of the land, subject to reasonable value requirements), and □ the residential property may not consist of more than four family units and one business unit except in the case	VA_Guidelines.txt
cbeea975-0a16-4801-89f6-a247f7a26961	units and one business unit except in the case of certain joint loans	VA_Guidelines.txt
429517f4-2fb9-42b1-aeb1-90ffc66dd4f8	. (See Chapter 7 for this exception.) · Refinance an existing VA-guaranteed or direct loan for the purpose of a lower interest rate. · Refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the Veteran as a home. (VA Cash-Out Refinance) · Refinance a contract for deed.	VA_Guidelines.txt
ff2cb4ad-7d10-4d16-a184-3aa97468c22c	If the Veteran is the titled owner of the property, VA Cash-Out Refinance guidelines apply.	VA_Guidelines.txt
40700163-3802-44e8-b63b-378329453b9a	If the Veteran is not the titled owner of the property, maximum loan amount considerations apply – see Topic 3. · Repair, alter, or improve a residence owned by the Veteran and occupied as a home. · Simultaneously purchase and improve a home	VA_Guidelines.txt
d7c013e4-0331-40e3-84a4-6a419763e68a	. · Simultaneously purchase and improve a home. · Improve a residence owned and occupied by the Veteran as the Veteran’s home through the installation of a solar heating system, a solar heating and cooling system, or a combined solar heating and cooling system, or through the application of a residential energy conservation measure.	VA_Guidelines.txt
071e85b9-9a73-476f-8202-6c9d771af8e8	These energy efficiency improvement loans can be made in conjunction with any type of VA purchase or refinancing loan. · Purchase a one-family residential unit in a condominium housing development approved by VA. · Purchase a farm residence to be owned and occupied by the Veteran as a home.	VA_Guidelines.txt
208de5aa-08a1-4810-ba22-adcfff9038b3	If the loan includes the purchase of farmland, the farmland is appraised at its residential value only. (See chapter 11). Continued on next page 3-4 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 2: Eligible Loan Purposes, continued b. Ineligible Loan Purposes VA cannot guarantee loans made for ineligible loan purposes.	VA_Guidelines.txt
8ac3249c-a68a-4152-a6ca-57275c8147a1	Examples of ineligible loan purposes include: · Purchase of unimproved land with the intent to improve it at some future date (that is, the land purchase is not in conjunction with a construction loan). · Purchase or construction of a dwelling for investment purposes	VA_Guidelines.txt
81120b51-4732-441c-9b46-9487148b3cdb	. · Purchase or construction of a combined residential and business property, unless, □ the property is primarily for residential purposes, □ there is not more than one business unit, and □ the nonresidential area does not exceed 25 percent of the total floor area	VA_Guidelines.txt
e827fc4b-65c4-4e96-8d1b-5019ff3e0b66	. · Purchase of more than one separate residential unit or lot unless the Veteran will occupy one unit and there is evidence that: □ the residential units are unavailable separately, □ the residential units have a common owner, □ the residential units have been treated as one unit in the past, and □ the residential units are assessed as one unit, or □ partition is not practical, as when one unit	VA_Guidelines.txt
d35b8de7-2eff-492e-84ab-cc1635b516b3	or □ partition is not practical, as when one unit serves the other(s) in some respect; for example, common approaches or driveways	VA_Guidelines.txt
dea22363-d058-4af4-a2e6-60f74ac27d66	. c.	VA_Guidelines.txt
f2f96d4d-bf3b-4d4c-b8ad-9d8380e4108f	Cash to Veteran Generally Not an Eligible Loan Purpose Cash to the Veteran from loan proceeds is permissible only for certain types of refinancing loans and under very limited circumstances, as follows: · For IRRRLs, see Chapter 6. · For cash-out refinancing loans, see Chapter 6.	VA_Guidelines.txt
0acb7762-471a-4078-83dd-6912a88a6429	For other types of refinancing loans and all purchase/acquisition loans, the Veteran generally cannot receive cash from loan proceeds. The only exceptions are: · The refund of items for which the Veteran paid cash, which were subsequently included in the loan amount. · Amounts credited for prorated taxes paid in arrears.	VA_Guidelines.txt
9631a604-6f44-4c0e-aaae-530d4318b9ed	Example: Earnest money can be refunded to the Veteran on a no-down payment loan. 3-5 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 3: Maximum Loan Amount Change Date: May 14, 2024 · The VA Maximum Loan Amount Exceptions table has been renamed VA Maximum Loan Amount Table, and now provides more detail on determining the maximum loan amount by loan type	VA_Guidelines.txt
90c201c5-9c81-40d2-aac0-d772636fd64f	. · Section c has been updated to remove the “rule of thumb” lenders should employ when determining the down payment amount. · This topic has been updated to remove hyperlinks and make minor grammatical edits. a.	VA_Guidelines.txt
7695eff7-c5dc-4aec-872e-ac611b0a9543	Does VA have Maximum Loan Amounts? There are no maximum dollar amounts prescribed for VA-guaranteed loans. Limitations on VA loan size are primarily attributable to two factors: 1. Lenders who sell their VA loans in the secondary market must limit the size of those loans to the maximums prescribed by secondary market participants. 2.	VA_Guidelines.txt
1e7fbc75-2398-4a7a-9d06-fba088b1d6d0	VA limits the amount of the loan as prescribed by the following table: Table 2: VA Maximum Loan Amount Table Loan Type Maximum Loan Loans to Purchase¹ (not including The lesser of: construction loans): (1) VA reasonable value, or (2) purchase price plus the cost of any energy efficiency improvements up to $6,000². (+) plus, the VA funding fee³ (unless the borrower is exempt).	VA_Guidelines.txt
826cc7a8-1614-4009-97c4-1b8944b3ee79	One-Time Closing Construction The lesser of: Loans (Construction loans that (1) VA reasonable value, or provide for both the interim (2) acquisition cost (contract to build plus the construction and permanent balance owed on land, interest reserve, financing.) contingency reserve, and permits – if the amounts were not included in the contract to build)	VA_Guidelines.txt
33dce4d4-ccd1-4a22-b80c-38fbf58204e8	. (+) plus, the VA funding fee (unless the borrower is exempt).	VA_Guidelines.txt
8f14f51e-1f42-4bdc-8f60-1612a08c9764	See Chapter 7 for additional information on Construction Loans. 1 38 CFR § 36	VA_Guidelines.txt
802e6ce2-2898-4f5d-b3f4-646e56b16b25	. 1 38 CFR § 36.4339(a)(2) 2 38 USC § 3710(d)(2) 3 38 USC § 3729 3-6 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 3: Maximum Loan Amount, continued Table 2: VA Maximum Loan Amount Table, continued Loan Type Maximum Loan Two-Time Closing Construction The lesser of: Loans (Loans to refinance interim (1) VA reasonable value, or construction loans.	VA_Guidelines.txt
252582f2-b329-4737-8b16-fac34042c8d5	Does not (2) sum of the outstanding balance of the interim include refinancing of construction loan plus the balance on any lot constructions loans that provide liens. for permanent financing.) (+) plus, the VA funding fee (unless the borrower is exempt). See Chapter 7 for additional information on Construction Loans.	VA_Guidelines.txt
2f778636-9c47-4561-8dcb-93b1e8319e21	Regular refinancing loan (cash- 100 percent of the VA reasonable value⁴ out) Note: the funding fee may be included in the new loan amount, except that any portion of the funding fee that would cause the new loan amount to exceed 100 percent of the reasonable value of the property must be paid at closing.	VA_Guidelines.txt
b61d09c1-e137-4f69-8696-9eec2a641d34	IRRRLs⁵ Existing VA loan balance (+) plus the cost of any energy efficiency improvements up to $6,000, (+) plus allowable fees and charges, (+) plus up to two discount points, (+) plus the VA funding fee (unless the borrower is exempt). (Lenders must use VA Form 26-8923, IRRRL Worksheet, for the actual calculation	VA_Guidelines.txt
5f32bdf8-0370-42ff-9903-034acfda2119	.) Loans to refinance a contract for The lesser of: deed when the Veteran is not the (1) VA reasonable value, or titled owner of the property. (2) outstanding balance of the contract for deed, plus allowable closing costs, plus the cost of any energy efficiency improvements up to $6,000⁶. (+) Plus, the VA funding fee⁷ (unless the borrower is exempt).	VA_Guidelines.txt

59e33a7b-68b7-4eef-9fb2-b3b49d6b5768

Please fax a copy of VA Form 26-8937 to the RLC of jurisdiction. · For COEs with a “non-exempt” status, the following “conditions” may appear: □ Funding Fee – Veteran is not exempt from the funding fee. □ Funding Fee – Veteran is not exempt from the funding fee due to receipt of non- service-connected pension.

VA_Guidelines.txt

341b2c78-ed55-40fb-be11-230cbb463555

Loan application will require prior approval processing by VA. · For COEs with “contact RLC” status, the following “condition” will appear: □ Funding Fee – Please fax a copy of VA Form 26-8937 to the RLC of jurisdiction of where the property is located. d. IRRRL Exemption Status The funding fee exemption status on IRRRLs is displayed in WebLGY at the time the case number is ordered. e.

VA_Guidelines.txt

a5db52ec-b038-4dea-b5df-8e9f32ae0410

Exempt Status and Verified Income Lenders may rely on the “exempt” status appearing next to the “funding fee” field for verification of the funding fee exemption. If the dollar amount is different than what is shown on the COE, use the most recent bank statement or award disability award letter for verification.

VA_Guidelines.txt

22eed010-e1e2-443b-b447-7956147fd3e7

Additionally, on COEs with an “exempt” status, lenders may treat any service- connected disability income amount appearing in the “condition” section of the COE as verified income. There is no need to fax in VA Form 26-8937 to confirm the status or amount showing on the COE.

VA_Guidelines.txt

95ca8e6b-c1b7-4885-9e3f-b5f53e4c7577

Continued on next page 2-5 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 2: What the Certificate of Eligibility Tells the Lender, continued f. Additional Conditions Listed on Some COE Forms Additional conditions that the lender and Veteran must comply with are listed on the COE, under the conditions heading.

VA_Guidelines.txt

0f361c12-32e5-4fbb-9437-aab7e3674c55

The following table provides the actions a lender should take for each condition, if applicable: Table 1: Additional COE Conditions Condition What to Do Valid unless discharged or released Ensure the Veteran is still on active duty before subsequent to the date of this certificate. closing the loan.

VA_Guidelines.txt

4ffc2237-ef8a-49ad-be92-f514372d6750

If the Veteran is discharged or A certification of continuous active duty released prior to loan closing, request a new as of the date of note is required. COE and do not close the loan until received.

VA_Guidelines.txt

c471cb54-a727-407c-9e41-57ff7bab350e

Excluded entitlement previously used If the entitlement used for the prior loan for a VA LIN as shown herein is identified in this condition is needed for the available only for use in connection with proposed loan, ensure the proposed loan will be the property that secured that loan. secured by the same property as the prior loan. (Cash-out refinance on a prior VA loan

VA_Guidelines.txt

dd3f6ae2-212f-41c0-b004-50741f794558

. (Cash-out refinance on a prior VA loan.) Entitlement previously used for a VA The Veteran must have proof that all properties LIN has been restored without disposal with VA-guaranteed loans have been disposed. of the property, under provision of 38 U.

VA_Guidelines.txt

ccca157b-541e-4924-915a-0afc8dd09fad

S. C. 3702(b)(4). Any future restoration requires disposal of all property or properties obtained with a VA loan. The Veteran is not exempt from the Non service-connected pension must be funding fee due to receipt of non submitted to VA for prior approval. service-connected pension.

VA_Guidelines.txt

b42edb67-8423-43a8-b7e3-5f803d5911eb

Loan Concurrence is required from Pension Service, application will require prior approval so allow extra time for processing. processing by VA. Funding Fee – Please fax a copy of VA The Veteran has a fiduciary and the loan must Form 26-8937 to the RLC of be submitted to VA for prior approval. jurisdiction.

VA_Guidelines.txt

df3f2b5d-a24a-4a21-a29a-6dfb6281afe2

Please have the lender Concurrence is required from Fiduciary contact the RLC for loan processing. g.

VA_Guidelines.txt

e52b5eaa-1ab7-4b82-a708-e5457a9fbb8d

The “Subsequent Use Funding Fee” Condition The “Subsequent Use Funding Fee” indicates the Veteran has used their home loan benefit before, so a higher funding fee is required. 2-6 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 4: Proof of Service Requirements Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.

VA_Guidelines.txt

84c3ecaa-d20f-441b-8241-54490fa31ecc

Discharged Veterans (Regular Military) The DD214 Form, Certificate of Release or Discharge From Active Duty, will generally contain all the information needed for VA to make an eligibility determination for persons who served on active duty of a regular component of the Armed Forces.

VA_Guidelines.txt

56068086-39c8-43b3-b687-51b84b7fd5b6

The regular Armed Forces include active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard. · VA will accept legible copies of the DD214 Form. · Veterans separated after October 1, 1979, should furnish Member Copy 2, 4, 8, or any copy of a DD214 Form that includes the COS and the narrative reason for separation.

VA_Guidelines.txt

81b58bc7-4b7c-4af3-a738-7dd0ac29be85

Veterans separated from military service after January 1, 1950, should have received DD214 Form. Veterans separated from active duty before January 1, 1950, received documentation other than DD214 Form. To be acceptable, it should indicate: □ LOS, and □ COS b.

VA_Guidelines.txt

32df4963-0d16-4013-a31f-5ae41626d21c

Veterans Still on Active Duty Proof of service for Veterans on active duty is a Statement of Service (SOS) signed by, or by the direction of, the adjutant, personnel office, or commander of the unit or higher headquarters they are attached to. There is no one unique form used by the military for an SOS.

VA_Guidelines.txt

8fbb5239-d8a6-421e-9473-eb137c900329

While an SOS is typically on military letterhead, it may also be electronic and both are acceptable. The SOS must clearly show the: · Veteran’s full name, · social Security Number (SSN) or the last 4 digits of the SSN, · entry date on active duty, · duration of lost time, if any, and · name and point of contact for the command or unit.

VA_Guidelines.txt

f6028e04-ff00-4939-bf26-728e3f137c49

Continued on next page 2-8 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 4: Proof of Service Requirements, continued c. Discharged Reserve/Guard Members There is no one form used by the Reserves or National Guard that is similar to DD214 Form.

VA_Guidelines.txt

bfb18f6d-604b-42b0-8ac0-5275dfd7f789

Selected Reserve describes a member or unit with the Ready Reserve designated by their respective services and approved by the Joint Chiefs of Staff as so essential to initial wartime missions that they have priority over all other reserves. The National Guard is a unique element of the U. S. Military that serves both community and country.

VA_Guidelines.txt

afc60e66-c3d6-4589-a38f-e4426f472192

Military that serves both community and country. Any state governor or the President of the United States can call on the Guard in a moment’s notice. Discharged members of the Army or Air National Guard may submit NGB Form 22, Report of Separation and Record of Service, and NGB Form 23B, Retirement Points Summary Statement, with the COS document.

VA_Guidelines.txt

9d6d26c2-1f30-4a4d-938d-ba948ee01662

Members of the Reserves should submit their points statement with COS. Typically, all members of the Reserves and/or Guard receive an annual retirement points summary which indicates the level and length of participation. The applicant should submit the latest retirement point statement received, along with evidence of honorable service. VA will accept legible copies. d.

VA_Guidelines.txt

48f36c56-3dcb-4b10-bc6f-b5ee32f93a17

VA will accept legible copies. d. Current Reserve/Guard Members Individuals who are still members of the Reserves/National Guard must provide an SOS signed by, or by the direction of, the adjutant, personnel office, or commander of the unit or higher headquarters they are attached to. There is no one form used uniformly by the military for an SOS.

VA_Guidelines.txt

9dd0be40-eae9-4665-bcb1-5c23b793fb9d

While an SOS is typically on military letterhead, some may be electronic and both are acceptable. The statement of service must clearly show the: · Veteran’s full name, · the SSN or the last 4 digits of the SSN, · entry date of the applicant’s Reserve/Guard duty, and · the unit must state the creditable (actually drilled) years served in the Reserves or the National Guard.

VA_Guidelines.txt

082ca69a-de7d-4f46-8878-d6b90cc43f02

If called to active duty, a copy of the orders must accompany the SOS with the name and point of contact for the command or unit. The statement must clearly indicate that the applicant is an “active” reservist or National Guard member and not just in a control group (inactive status).

VA_Guidelines.txt

f8e16b20-da26-46db-9abf-3b664eff226a

If Veterans cannot locate proof of service, they can request military documents either through the National Archives, http://www.ebenefits.va.gov/, or by completing SF- 180, Request Pertaining to Military Records. The completed form should be submitted to the appropriate address shown. It should not be sent to VA.

VA_Guidelines.txt

d02a0d21-4a3e-4783-82be-3d79c2515482

It should not be sent to VA. In many cases, VA internal systems will have sufficient information to make the eligibility determination for those who served on active duty.

VA_Guidelines.txt

fbc31121-4dc2-4080-b6e5-86c9e8a9c779

Lenders and Veterans should not delay requesting a COE pending receipt of requested military documents. 2-9 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 5: Basic Eligibility Requirements Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.

VA_Guidelines.txt

f5468fd0-1892-4289-8d5a-341be4a42c56

General Rule for Eligibility A Veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940, and was discharged under conditions other than dishonorable after either: · 90 days or more, any part of which occurred during wartime, or · 181 continuous days or more (peacetime). b.

VA_Guidelines.txt

47bdcb12-c002-4a84-9da8-d281ebcf1d14

The 2-Year Requirement A greater length of service is required for Veterans who: · enlisted (and service began) after September 7, 1980, or · entered service as an officer after October 16, 1981 These Veterans must have completed either: · 24-continuous months of active duty, or · the full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or

VA_Guidelines.txt

37d46891-6551-4f9c-938c-73319fa65380

less than 90 days (any part during wartime) or 181 continuous days (peacetime)

VA_Guidelines.txt

6892eef1-4b09-418f-90fb-84bb75848541

.

VA_Guidelines.txt

93513470-f86c-4568-9296-8dd6a2fa6af3

Cases involving other than honorable discharges will usually require further development by the VA Compensation Department. This is necessary to determine if the service was under other than dishonorable conditions. c.

VA_Guidelines.txt

876c40ad-4d8d-46bc-afab-9b435408b6b2

Wartime and Peacetime Refer to the Following Periods of Service Table 2: Wartime and Peacetime Eras Wartime Peacetime World War II 9/16/1940 - 7/25/1947 Post World War II period 7/26/1947 - 6/26/1950 Korean conflict 6/27/1950 - 1/31/1955 Post Korean period 2/1/1955 - 8/4/1964 Vietnam era 8/5/64 - 5/7/1975 Post Vietnam period 5/8/1975 - 8/1/1990 (The Vietnam era begins 2/28/1961 for those

VA_Guidelines.txt

c2d827d2-5689-400d-9059-34ef300595a1

(The Vietnam era begins 2/28/1961 for those individuals who served in the Republic of Vietnam

VA_Guidelines.txt

0fe1be31-31ea-4b00-8731-04b4032926ca

.) Persian Gulf War 8/2/1990 - date to be determined Continued on next page 2-10 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 5: Basic Eligibility Requirements, continued d.

VA_Guidelines.txt

c6661f7a-5e27-4ee3-980f-3755ac488143

Eligibility for Reserves and/or Guard Members of the Reserves and National Guard who are not otherwise eligible for loan guaranty benefits are eligible upon completion of 6 years of service in an active or drilling status in the Reserves or Guard (unless released earlier specifically for a service-connected disability). The applicant must have received an honorable character of discharge.

VA_Guidelines.txt

1da65fe5-f2e6-412f-aba8-f7421a423224

A general or under honorable conditions discharge is not a qualifying or acceptable character of discharge. Service in the Individual Ready Reserve or Control Group (inactive status) is not qualifying length of service for the home loan program. e. Basic Eligibility Table The table below provides a quick reference to some of the most commonly eligible Veterans. This table is not exhaustive.

VA_Guidelines.txt

382b2f33-6842-4e5b-af7b-edb103575246

This table is not exhaustive. A Veteran’s eligibility for home loan benefits may only be determined by VA. f. Eligibility of Spouses of Veterans Some spouses of Veterans may have home loan eligibility.

VA_Guidelines.txt

9dc662ac-95bd-4cef-91e4-ead91edfaf02

They are the: · unmarried surviving spouse of a Veteran, who died as a result of service or service- connected causes, · surviving spouse of a Veteran who dies on active duty or from service-connected causes, who remarries on or after age 57 and on or after December 16, 2003, and · spouse of an active duty member who is listed as MIA or a POW for at least 90 days.

VA_Guidelines.txt

9c08e758-4c20-4828-b0be-886be0cee1d2

Eligibility under this MIA/POW provision is limited to one-time use only. · surviving spouses of Veterans who died from non service-connected causes may also be eligible if certain conditions are met. Those conditions are found in Topic 3, subsection b(1), of this chapter. · surviving spouse who is eligible for or in receipt of certain types of Dependency Indemnity Compensation (DIC). g.

VA_Guidelines.txt

664611dd-5e8d-4ecc-8bbd-a1412860f97d

Additional Eligibility The table below provides a quick reference to some additional types of eligible Veterans. This table is not exhaustive. A Veteran’s eligibility for home loan benefits may only be determined by VA. h.

VA_Guidelines.txt

da41bf63-9391-4356-ad66-54d4f74c9eab

Other Qualifying Service Congress has periodically granted Veteran status to groups other than members of the Army, Air Force, Navy, Marine Corps, and Coast Guard, such as certain members of the Public Health Service, and cadets at the service academies. Lenders should contact one of the RLCs for assistance when one of these unique cases is encountered.

VA_Guidelines.txt

2801a1a9-f20b-4ccd-9847-11805c81cc57

Continued on next page 2-11 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 5: Basic Eligibility Requirements, continued i. Exceptions to LOS There are numerous exceptions to the LOS requirements outlined in this section.

VA_Guidelines.txt

7c9bb519-2eb2-44aa-a21f-da739b4ecf72

For example, 1 day of service is sufficient for an individual who is discharged or released from service (regular active duty or Reserve/National Guard) due to a service-connected disability which would be listed on the discharge paperwork. Because of the complexity and number of exceptions, this chapter does not attempt to cover all of them.

VA_Guidelines.txt

fee75b54-ecb9-49a0-8e3a-28da38080ca3

Because there are exceptions, lenders should not assume a Veteran is not eligible. Instead, they should create an application and allow VA to make a formal determination of eligibility. j. When a COE is Denied The table below provides a quick reference to some additional types of eligible Veterans. This table is not exhaustive.

VA_Guidelines.txt

f2aad519-3928-4ccf-b423-a0805292604e

This table is not exhaustive. A Veteran’s eligibility for home loan benefits may only be determined by VA. 2-12 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 6: Restoration of Previously Used Entitlement Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.

VA_Guidelines.txt

9aad55c5-9105-4dbf-be07-d3af12a6d9d4

Basic Restoration Entitlement previously used in connection with a VA home loan may be restored under certain circumstances. Once restored, it can be used again for another VA loan.

VA_Guidelines.txt

1e187627-c985-4ef7-b57e-9c5d59aee6b6

Restoration of previously used entitlement is possible if: · property which secured the VA-guaranteed loan has been sold, and the loan has been paid in full; or · eligible Veteran-transferee has agreed to assume the outstanding balance on a VA loan and substitute his or her entitlement for the same amount originally used on the loan.

VA_Guidelines.txt

f760fde6-9c1c-405d-96e8-552773516704

The assuming Veteran, substituting his/her entitlement, must also meet occupancy, income, and credit requirements. This should be completed before requesting the Loan Guaranty Certificate in WebLGY, on the new loan. b.

VA_Guidelines.txt

d73e28ca-3b44-49df-b92d-503415d9bb19

Special Restoration Cases In addition to the basic restoration criteria outlined above, a Veteran may obtain restoration of the entitlement used on a prior VA loan under any of the following circumstances: · Regular “cash-out” refinance where the prior VA loan has been paid in full and the Veteran has made application for a refinance loan to be secured by the same property which secured the prior

VA_Guidelines.txt

b3f16846-a894-4bde-8459-877a80a93016

by the same property which secured the prior VA loan

VA_Guidelines.txt

c9e6a619-500e-4e97-92de-afc6d3260b4a

.

VA_Guidelines.txt

ad187026-5503-4545-9da0-27f119614060

This includes refinancing situations, in which the prior loan will be paid off at closing from a VA refinancing loan on the same property, or · One –time restoration where the prior VA loan has been paid in full, but the Veteran has not disposed of the property securing the loan.

VA_Guidelines.txt

0e4cb265-1a7b-46ae-862b-af7978c1712a

The Veteran may obtain restoration of the entitlement used on the prior loan in order to purchase a different property, one time only. Once such restoration is used, the Veteran’s COE will indicate the one-time restoration. The COE will also advise that any future restoration (purchase or cash-out refinance) will require disposal of all property or properties obtained with a VA loan. Example.

VA_Guidelines.txt

8e5ffa33-4b1a-4188-bba7-566fdaf9bb98

Example. A Veteran used all his entitlement to purchase a home for $453,100 in a non-high cost county in Maryland. Prior to job relocation to GA, he refinanced the loan to a non-VA loan. The loan was paid in full; however, he still owned the property. He now wants to purchase a home in GA and applies for a one-time restoration. This is possible.

VA_Guidelines.txt

42d97a04-7105-4070-ac2a-7c7fd923d08b

If the Veteran wants to use the benefit in the future for another purchase or regular “cash- out” refinancing, both properties would have to be disposed of before entitlement can be restored. 2-13 2-13 VA Lenders Handbook M26-7 Chapter 2: Veteran’s Eligibility and Entitlement Topic 7: Misuse of Veteran’s Entitlement Change Date: March 28, 2019 · This chapter has been revised in its entirety. a.

VA_Guidelines.txt

6da524b4-58a8-4b9f-a576-5ff3527cda41

What Constitutes Misuse? A basic requirement of the law governing the VA home loan program is that the Veteran has a bona fide intention of occupying his or her property as a home. Home loan entitlement is not being used properly if the Veteran arranges to sell or convey the property to a third party prior to closing the loan. b. What to Do?

VA_Guidelines.txt

a1a7cce8-fa60-4e47-9818-64fa09c21ad0

Contact the VA RLC with jurisdiction over the property for advice regarding any case in which there may be a question regarding the legality of entitlement use

VA_Guidelines.txt

e2802b67-fd9f-465d-8963-e5706d8980f1

. 2-14 CHAPTER 3: The VA Loan and Guaranty Overview Topic Title Page 1 Basic Elements of a VA-Guaranteed Loan 3-2 2 Eligible Loan Purposes 3-4 3 Maximum Loan Amount 3-6 4 Maximum Guaranty on VA Loans 3-9 5 Occupancy 3-11 6 Interest Rates 3-14 7 Discount Points 3-15 8 Maturity 3-17 9 Amortization 3-18 10 Eligible Geographic Locations for the Secured Property 3-19 11 What Does a VA Guaranty Mean to

VA_Guidelines.txt

b4fb71c7-3511-4b7e-9d0c-4cc9734c37d2

Property 3-19 11 What Does a VA Guaranty Mean to the Lender

VA_Guidelines.txt

b4dfdd98-116b-41ef-af8a-5e55d60a62ec

? 3-20 12 Post-Guaranty Issues 3-23 3-1 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 1: Basic Elements of a VA-Guaranteed Loan, continued a

VA_Guidelines.txt

10d5b9ce-a391-468a-ae05-fdd91f8cda81

.

VA_Guidelines.txt

13b2efe6-4840-4610-886a-6cbcc45e45e4

General Rules, continued Table 1: General Rules Regarding VA-Guaranteed Loans, continued Subject Explanation Section Underwriting Flexible standards.

VA_Guidelines.txt

7f8886c8-5916-447f-ae8e-dde638069637

The Veteran must have: Chapter 4 · satisfactory credit, and · satisfactory repayment ability □ stable income, □ residual income (net effective income minus monthly shelter expense) in accordance with regional tables, and □ acceptable ratio of total monthly debt payments to gross monthly income (ratios exceeding 41% requires closer scrutiny and compensating factors).

VA_Guidelines.txt

53fd0e72-2c80-42b3-8c4e-1b9f91864c9e

IRRRL Used to refinance an existing VA loan at a lower interest Chapter 6 (Streamline rate. Refinancing · no appraisal or underwriting is required, Loans) · closing costs may be financed in the loan, · reasonable discount points can be charged, but only two discount points can be financed in the loan, and · no cash to the borrower.

VA_Guidelines.txt

dccb2f46-dece-44d3-8362-a485604b5e24

Note: A fixed rate loan to refinance a VA Adjustable Rate Mortgage (ARM) may be at a higher interest rate.

VA_Guidelines.txt

69e3df47-64aa-4e49-a90d-c96beb16967b

Funding Fee The Veteran, unless exempt, must pay a funding fee to help Chapter 8 defray costs of the VA Home Loan program. · find the percentage appropriate to the Veteran’s particular circumstances on the funding fee table, and · apply this percentage to the loan amount to arrive at the funding fee. The funding fee may always be financed in the loan.

VA_Guidelines.txt

41187217-7ea2-422d-9ae9-5b32c35f7b87

Note: for cash-out refinance loans, the loan amount, including the funding fee, may not exceed 100% of the reasonable value as determined by VA.

VA_Guidelines.txt

b4f2b45a-fde3-4791-9f7f-8d231772ce46

Closing Costs Those payable by the Veteran are limited by regulation to a Chapter 8 specific list of items plus a one percent flat charge by the lender. · Any other party, including the seller, can pay any costs on behalf of the Veteran. (Subject to concession limits). · Closing costs cannot be financed in the loan except on certain refinancing loans. (See chapter 8

VA_Guidelines.txt

b6158a99-56c5-4b3c-b9f4-e1002ab1dbc6

. (See chapter 8.) Security The lender may use any note or mortgage forms they wish Chapter 9 Instruments as long as they contain certain VA-required clauses. 3-3 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 2: Eligible Loan Purposes Change Date: May 14, 2024 · This topic has been updated to make minor grammatical edits

VA_Guidelines.txt

88f4ef2e-f6ca-4809-adfd-43692bc471e7

. · Section a has been updated to include an eligible loan purpose: refinancing of contracts for deed. · Section c has been updated to indicate that Veterans may receive cash back for amounts credited for prorated taxes paid in arrears. a.

VA_Guidelines.txt

98677dc6-3c1d-4cc2-8bf6-3807a98cb4da

List of Eligible Loan Purposes The law authorizes VA to guarantee loans made to eligible Veterans only for the following purposes: · Purchase or construct a residence, including a condominium unit to be owned and occupied by the Veteran as a home: □ the loan may include simultaneous purchase of the land on which the residence is situated or will be situated, □ loans may also be guaranteed for the

VA_Guidelines.txt

0f744c69-abd0-4536-b9e6-27cbab77f8f6

situated, □ loans may also be guaranteed for the construction of a residence on land already owned by the Veteran (a portion of the loan may be used to refinance a purchase money mortgage or sales contract for the purchase of the land, subject to reasonable value requirements), and □ the residential property may not consist of more than four family units and one business unit except in the case

VA_Guidelines.txt

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units and one business unit except in the case of certain joint loans

VA_Guidelines.txt

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. (See Chapter 7 for this exception.) · Refinance an existing VA-guaranteed or direct loan for the purpose of a lower interest rate. · Refinance an existing mortgage loan or other indebtedness secured by a lien of record on a residence owned and occupied by the Veteran as a home. (VA Cash-Out Refinance) · Refinance a contract for deed.

VA_Guidelines.txt

ff2cb4ad-7d10-4d16-a184-3aa97468c22c

If the Veteran is the titled owner of the property, VA Cash-Out Refinance guidelines apply.

VA_Guidelines.txt

40700163-3802-44e8-b63b-378329453b9a

If the Veteran is not the titled owner of the property, maximum loan amount considerations apply – see Topic 3. · Repair, alter, or improve a residence owned by the Veteran and occupied as a home. · Simultaneously purchase and improve a home

VA_Guidelines.txt

d7c013e4-0331-40e3-84a4-6a419763e68a

. · Simultaneously purchase and improve a home. · Improve a residence owned and occupied by the Veteran as the Veteran’s home through the installation of a solar heating system, a solar heating and cooling system, or a combined solar heating and cooling system, or through the application of a residential energy conservation measure.

VA_Guidelines.txt

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These energy efficiency improvement loans can be made in conjunction with any type of VA purchase or refinancing loan. · Purchase a one-family residential unit in a condominium housing development approved by VA. · Purchase a farm residence to be owned and occupied by the Veteran as a home.

VA_Guidelines.txt

208de5aa-08a1-4810-ba22-adcfff9038b3

If the loan includes the purchase of farmland, the farmland is appraised at its residential value only. (See chapter 11). Continued on next page 3-4 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 2: Eligible Loan Purposes, continued b. Ineligible Loan Purposes VA cannot guarantee loans made for ineligible loan purposes.

VA_Guidelines.txt

8ac3249c-a68a-4152-a6ca-57275c8147a1

Examples of ineligible loan purposes include: · Purchase of unimproved land with the intent to improve it at some future date (that is, the land purchase is not in conjunction with a construction loan). · Purchase or construction of a dwelling for investment purposes

VA_Guidelines.txt

81120b51-4732-441c-9b46-9487148b3cdb

. · Purchase or construction of a combined residential and business property, unless, □ the property is primarily for residential purposes, □ there is not more than one business unit, and □ the nonresidential area does not exceed 25 percent of the total floor area

VA_Guidelines.txt

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. · Purchase of more than one separate residential unit or lot unless the Veteran will occupy one unit and there is evidence that: □ the residential units are unavailable separately, □ the residential units have a common owner, □ the residential units have been treated as one unit in the past, and □ the residential units are assessed as one unit, or □ partition is not practical, as when one unit

VA_Guidelines.txt

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or □ partition is not practical, as when one unit serves the other(s) in some respect; for example, common approaches or driveways

VA_Guidelines.txt

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. c.

VA_Guidelines.txt

f2f96d4d-bf3b-4d4c-b8ad-9d8380e4108f

Cash to Veteran Generally Not an Eligible Loan Purpose Cash to the Veteran from loan proceeds is permissible only for certain types of refinancing loans and under very limited circumstances, as follows: · For IRRRLs, see Chapter 6. · For cash-out refinancing loans, see Chapter 6.

VA_Guidelines.txt

0acb7762-471a-4078-83dd-6912a88a6429

For other types of refinancing loans and all purchase/acquisition loans, the Veteran generally cannot receive cash from loan proceeds. The only exceptions are: · The refund of items for which the Veteran paid cash, which were subsequently included in the loan amount. · Amounts credited for prorated taxes paid in arrears.

VA_Guidelines.txt

9631a604-6f44-4c0e-aaae-530d4318b9ed

Example: Earnest money can be refunded to the Veteran on a no-down payment loan. 3-5 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 3: Maximum Loan Amount Change Date: May 14, 2024 · The VA Maximum Loan Amount Exceptions table has been renamed VA Maximum Loan Amount Table, and now provides more detail on determining the maximum loan amount by loan type

VA_Guidelines.txt

90c201c5-9c81-40d2-aac0-d772636fd64f

. · Section c has been updated to remove the “rule of thumb” lenders should employ when determining the down payment amount. · This topic has been updated to remove hyperlinks and make minor grammatical edits. a.

VA_Guidelines.txt

7695eff7-c5dc-4aec-872e-ac611b0a9543

Does VA have Maximum Loan Amounts? There are no maximum dollar amounts prescribed for VA-guaranteed loans. Limitations on VA loan size are primarily attributable to two factors: 1. Lenders who sell their VA loans in the secondary market must limit the size of those loans to the maximums prescribed by secondary market participants. 2.

VA_Guidelines.txt

1e7fbc75-2398-4a7a-9d06-fba088b1d6d0

VA limits the amount of the loan as prescribed by the following table: Table 2: VA Maximum Loan Amount Table Loan Type Maximum Loan Loans to Purchase¹ (not including The lesser of: construction loans): (1) VA reasonable value, or (2) purchase price plus the cost of any energy efficiency improvements up to $6,000². (+) plus, the VA funding fee³ (unless the borrower is exempt).

VA_Guidelines.txt

826cc7a8-1614-4009-97c4-1b8944b3ee79

One-Time Closing Construction The lesser of: Loans (Construction loans that (1) VA reasonable value, or provide for both the interim (2) acquisition cost (contract to build plus the construction and permanent balance owed on land, interest reserve, financing.) contingency reserve, and permits – if the amounts were not included in the contract to build)

VA_Guidelines.txt

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. (+) plus, the VA funding fee (unless the borrower is exempt).

VA_Guidelines.txt

8f14f51e-1f42-4bdc-8f60-1612a08c9764

See Chapter 7 for additional information on Construction Loans. 1 38 CFR § 36

VA_Guidelines.txt

802e6ce2-2898-4f5d-b3f4-646e56b16b25

. 1 38 CFR § 36.4339(a)(2) 2 38 USC § 3710(d)(2) 3 38 USC § 3729 3-6 VA Lenders Handbook 26-7 Chapter 3: The VA Loan and Guaranty Topic 3: Maximum Loan Amount, continued Table 2: VA Maximum Loan Amount Table, continued Loan Type Maximum Loan Two-Time Closing Construction The lesser of: Loans (Loans to refinance interim (1) VA reasonable value, or construction loans.

VA_Guidelines.txt

252582f2-b329-4737-8b16-fac34042c8d5

Does not (2) sum of the outstanding balance of the interim include refinancing of construction loan plus the balance on any lot constructions loans that provide liens. for permanent financing.) (+) plus, the VA funding fee (unless the borrower is exempt). See Chapter 7 for additional information on Construction Loans.

VA_Guidelines.txt

2f778636-9c47-4561-8dcb-93b1e8319e21

Regular refinancing loan (cash- 100 percent of the VA reasonable value⁴ out) Note: the funding fee may be included in the new loan amount, except that any portion of the funding fee that would cause the new loan amount to exceed 100 percent of the reasonable value of the property must be paid at closing.

VA_Guidelines.txt

b61d09c1-e137-4f69-8696-9eec2a641d34

IRRRLs⁵ Existing VA loan balance (+) plus the cost of any energy efficiency improvements up to $6,000, (+) plus allowable fees and charges, (+) plus up to two discount points, (+) plus the VA funding fee (unless the borrower is exempt). (Lenders must use VA Form 26-8923, IRRRL Worksheet, for the actual calculation

VA_Guidelines.txt

5f32bdf8-0370-42ff-9903-034acfda2119

.) Loans to refinance a contract for The lesser of: deed when the Veteran is not the (1) VA reasonable value, or titled owner of the property. (2) outstanding balance of the contract for deed, plus allowable closing costs, plus the cost of any energy efficiency improvements up to $6,000⁶. (+) Plus, the VA funding fee⁷ (unless the borrower is exempt).

VA_Guidelines.txt