by usezloan | Dec 22, 2021 | Financial study
융자지식 260-VA FUNDING FEE
4.11 VA FUNDING FEE
Unlike a FHA-insured loan, there is no minimum investment or down payment required for VA loans;
however, there may be a variable VA funding fee to the VA to help defray the costs of the VA home
loan program.
o This fee may be waived for veterans with disabilities or surviving spouses.
o The funding fee may be financed into the loan and ranges from 0.50% to 3.30%, depending on
what type of loan the veteran is obtaining and whether it is his/her first-time use of loan
eligibility or a subsequent use.
o The funding fee is considered non-refundable unless the borrower is overcharged or
inadvertently charged.
o The typical funding fee is 2.15 percent of the purchase price of the home.
Type of Veteran — Regular Military
Down Payment 1stTime Use Subsequent Use
No down payment*– 2.15% 3.3%
5%ormore (up to 10%)–1.50% 1.5%
10%ormore– 1.25% 1.25%
Type of Veteran — National Guard and Reservists
Down Payment 1stTime Use Subsequent Use
No down payment*– 2.4% 3.3%
5%ormore (up to 10%)–1.75% 1.75%
10%ormore– 1.50% 1.50%
4.12 RESTORING ENTITLEMENT
It is possible for a veteran to use some entitlement on a previous purchase, and have partial
entitlement available for another purchase if:
o The property, securing the VA loan, has been sold and that loan has been paid in full.
o An eligible veteran (not disabled/not dishonored) has agreed to assume the outstanding
balance on a VA loan and substitute his entitlement for the same amount originally used on
the loan
4.13 VA LOAN LIMITS
The VA doesn’t limit the price a veteran can pay for a house – but it does limit the amount it will
guarantee. The VA will guarantee up to 25% of the purchased price (or value – whichever is less).
For example – if a home is selling for $405,000 – the MAX amount the VA will guarantee is $101,250
($405,000 x 25%). This amount is then compared to the veteran “entitlement amount” to see if he
can purchase the property without a down payment.
4.14 VA ENTITLEMENT AND LOAN GUARANTY
Eligible veterans receive specific amount of entitlement to be used when applying for VA financing.
The Entitlement amount is the maximum amount that the VA will “guarantee” on behalf of a Veteran.
Full entitlement is equal to $36,000. Most lenders will lend up to four times the amount of the
veteran’s entitlement ($144,000). For military borrowers with the $36,000 of maximum entitlement,
VA’s maximum guarantee amount for loans over $144,000 is based on 25% of the county loan limits.
Since a Veterans entitlement is based on 25% or of the County Limit ($510,400 in most counties for
2020) the maximum is $127,600. If an entitlement is insufficient, a cash down payment may be
allowed for the balance.
For Example:
➢ Assume each veteran is buying a home in a county where the current loan limit for a singlefamily home is $510,400, making the maximum guarantee $127,600 ($ 510,400 x .25).
➢ Veteran Steve has full entitlement available and is purchasing a home for $350,000. $350,000
x 25% (sales price/appraised value) = $87,500.
➢ Since Steve has his entire entitlement of $127,600 available, he can purchase this house
without a down payment, and there is still $40,100 in available entitlement.
CASE STUDY QUESTION: RESTORATION OF VA HOME LOAN ENTITLEMENT
A mortgage loan originator is working with a veteran who had previously used his VA home buying
benefits. The veteran advised the mortgage loan originator that the loan no longer exists.
The mortgage loan originator in turn advised the veteran that if he had paid off the prior VA loan and
disposed of the property that the eligibility can be restored for additional use, what the veteran did
not tell the MLO was that the home had been sold in a “short sale”.
This veteran had been liable for the deficiency that the VA incurred in liquidating the property and
the VA settled for payment representing fifty percent (50%) of the deficiency. The veteran was
released from future liability with the settlement.
What should the mortgage loan originator tell the veteran about the reusability of that entitlement?
CASE STUDY ANSWER: RESTORATION OF VA HOME LOAN ENTITLEMENT
Even though the veteran was released from liability and the home (and its loan) is gone, the Federal
Government still suffered a loss on the loan. The law does not permit the used portion of the
veteran’s eligibility to be restored until the loss has been repaid in full.
The mortgage loan originator should do the math and help the veteran understand the costs involved.
The veteran can either pay off the remaining deficiency or come up with the down payment required
to offset the shortfall of guarantee necessary to provide the twenty-five percent (25%) level required.
VA Purchase & Cash Out Refinance Home Loans –
http://benefits.va.gov/HOMELOANS/purchasecashout.asp?expandable=0&subexpandable=0
by usezloan | Dec 21, 2021 | Financial study
융자지식 259-VA LOANS
4.9 VA LOANS
The Department of Veterans Affairs (VA) is a loan guarantee program which supports affordable loan
programs for our nation’s active veterans, honorably discharged/disabled veterans, and spouses of
deceased veterans. The fundamental difference between the FHA and the VA is that the VA permits
100% financing (no down payment) and FHA requires a minimum 3.5% down payment for eligible
borrowers.
VA loans are made to owner-occupant veterans by private lenders such as banks, thrifts and
mortgage companies. To obtain a loan, the veteran applies directly to a lender. If the loan is approved,
the VA guarantees a percentage of the loan amount after closing. The guaranty protects the lender
against loss if the borrower defaults in repaying the loan and is provided through what is referred to
as the VA entitlement that all eligible veterans receive.
Veterans seeking financing can obtain a VA loan for one-to four-unit properties, including
condominiums and manufactured homes.
4.10 VA ELIGIBILITY AND QUALIFICATIONS
There are two documents needed for VA Eligibility: Certificate of Eligibility (COE), which verifies
eligibility based on the length of service; and the DD214 (discharge paperwork for who have been
discharged) or NGB22/23 (General Orders) or Statement of Service.
VA Qualifications and Guidelines – VA loans require the originator to perform two different
qualification calculations: one on debt-to-income ratio and one on residual income.
● Veteran must qualify on full documentation. PITI plus all other debt must be no more than
41% of their gross monthly income and he/she must meet the residual income requirements.
● Residual income is the amount that is left over to purchase necessities like food and gasoline
after all other expenses are paid. The numbers are based on a report filed by the Department
of Labor’s Bureau of Labor Statics and is available on their website.
● No mortgage insurance. Instead of mortgage insurance, there is a one-time variable VA
funding fee that can be included in the loan.
● The lender sets the interest rate on VA loans, not the VA.
● The maximum term for a VA loan is 30 years.
● The late fee is 4% of the monthly P&I.
● Mortgage Insurance: Not required on VA Loans.
● If legally married, spouse’s income may also be considered for qualification purposes:
o Non-married co-borrower is not allowed on a VA loan unless he or she is an eligible
veteran who will occupy the home
o Two eligible veterans may combine their VA Benefits to qualify for a larger loan
VA Appraisal – The reasonable value of the property is obtained through a VA appraisal, which is also
called a Certificate of Reasonable Value (CRV) or Notice of Reasonable Value (NOV).
Assumption of VA Loans
A VA-guaranteed loan may be assumed by a purchaser of the subject property, and the interest rate
will remain intact. If it is assumed by an “eligible veteran,” then the selling veteran’s entitlement is
restored and he/she would be eligible for a new VA Loan. If it is assumed by a non-veteran, the
entitlement is NOT restored.
Closing Costs
The veteran can pay a maximum of reasonable and customary amounts for any and all of the itemized
fees and charges designated by the VA including:
• Flood zone determination
• Recording fees
• Credit report
• Prepaid items
• Hazard insurance
• Appraisal and compliance inspections
• Survey
• Title examination and title insurance
• Special mailing fees for refinancing loans
• Mortgage Electronic Registration System (MERS) fee
The veteran cannot be charged for the following fees and charges under VA regulations:
• Attorney ‘s fees
• Brokerage fees
• Prepayment penalties
• Builder’s HUD/FHA inspection fees
VA Closing Cost and Seller Concessions
Borrowers may pay reasonable and customary fees for each loan, but with several exceptions. A
veteran cannot pay tax services, underwriting, processing, lender inspection and application or loan
preparation fees. Loans are permitted to contain up to 4% seller concessions (seller-paid closing
cost).
ConsideredSellerConcessionsand Subject to a
4%Limit
Payment of the buyer’s VA funding fee
Prepayment ofthebuyer’sproperty taxesand/ or
insurance Gifts (such as a television or microwave oven)
Payment of extra points to provide permanent
interest rate buydowns
Provision ofescrowed fundsto provide temporary
interest rate buydowns
Payoff of credit balances orjudgments onbehalf of
the buyer
Not Considered as Seller Concessions
Payment of the buyer’s closing costs
Payment of points as appropriate to
the market
일자지식 259-VA LOANS
4.9 VA 대출
VA(Department of Veterans Affairs)는 현역 재향 군인, 명예 제대/장애 재향 군인 및 사망한 재향 군인의 배우자를 위한 저렴한 대출 프로그램을 지원하는 대출 보증 프로그램입니다. FHA와 VA의 근본적인 차이점은 VA가 허용한다는 것입니다.
100% 융자(계약금 없음) 및 FHA는 적격 차용인에 대해 최소 3.5%의 계약금을 요구합니다.
VA 대출은 은행, 중고품 및 모기지 회사와 같은 개인 대출 기관이 소유주 재향 군인에게 제공합니다. 대출을 받기 위해 베테랑은 대출 기관에 직접 신청합니다. 대출이 승인되면 VA는 마감 후 대출 금액의 일정 비율을 보장합니다. 보증은 대출자를 보호합니다
차용인이 대출 상환을 불이행하고 모든 적격 재향 군인이 받는 VA 자격을 통해 제공되는 경우 손실에 대비합니다.
자금 조달을 원하는 제대군인은 콘도미니엄 및 제조 주택을 포함하여 1-4단위 부동산에 대한 VA 대출을 받을 수 있습니다.
4.10 VA 자격 및 자격
VA 자격에는 두 가지 문서가 필요합니다.
근속 기간에 따른 자격 및 DD214(퇴원 서류
퇴원) 또는 NGB22/23(일반 명령) 또는 서비스 명세서.
VA 자격 및 지침 – VA 대출을 이용하려면 발행자가 소득 대비 부채 비율과 잔여 소득의 두 가지 자격 계산을 수행해야 합니다.
● 제대군인은 전체 문서에 대한 자격이 있어야 합니다. PITI와 기타 모든 부채는 총 월 소득의 41%를 넘지 않아야 하며 잔여 소득 요건을 충족해야 합니다.
● 잔존 소득은 식료품, 휘발유 등 생필품을 구입하기 위해 남은 금액입니다.
다른 모든 비용이 지불된 후. 숫자는 부서에서 제출한 보고서를 기반으로 합니다.
노동 통계국의 웹사이트에서 확인할 수 있습니다.
● 모기지 보험이 없습니다. 모기지 보험 대신 일회성 가변 VA가 있습니다.
대출에 포함될 수 있는 자금 조달 수수료.
● 대출 기관은 VA가 아닌 VA 대출에 대한 이자율을 설정합니다.
● VA 대출의 최대 기간은 30년입니다.
● 연체료는 월별 P&I의 4%입니다.
● 모기지 보험: VA 대출에는 필요하지 않습니다.
● 법적으로 결혼한 경우 배우자의 소득도 자격 요건으로 고려될 수 있습니다.
o 미혼 공동 차용자는 자격이 없는 한 VA 대출을 받을 수 없습니다.
집을 차지할 베테랑
o 두 명의 적격 재향 군인은 VA 혜택을 결합하여 더 큰 대출 자격을 얻을 수 있습니다.
VA 감정 – 부동산의 합리적인 가치는 VA 감정을 통해 얻습니다.
합리적인 가격 증명서(CRV) 또는 합리적인 가격 통지서(NOV)라고 합니다.
VA 대출의 가정
대상 부동산의 구매자는 VA 보증 대출을 받을 수 있으며, 이자율은
그대로 유지됩니다. “적격 재향 군인”이 인수하는 경우 판매 재향 군인의 자격은 다음과 같습니다.
회복되고 새로운 VA 대출을 받을 자격이 됩니다. 재향 군인이 아닌 사람이 가정하는 경우
자격이 복원되지 않습니다.
마감 비용
재향 군인은 항목별 모든 항목에 대해 합리적이고 관례적인 최대 금액을 지불할 수 있습니다.
다음을 포함하여 VA가 지정한 수수료 및 요금:
• 홍수 지역 결정
• 녹음비
• 신용 보고서
• 선불 아이템
• 위험 보험
• 평가 및 준수 검사
• 조사
• 소유권 심사 및 소유권 보험
• 융자 재융자를 위한 특별 우편 요금
• 모기지 전자 등록 시스템(MERS) 수수료
재향 군인은 VA 규정에 따라 다음 수수료 및 요금을 청구할 수 없습니다.
• 변호사 비용
• 중개 수수료
• 선불 벌금
• 건축업자의 HUD/FHA 검사 수수료
VA 마감 비용 및 판매자 양보
차용자는 각 대출에 대해 합리적이고 관례적인 수수료를 지불할 수 있지만 몇 가지 예외가 있습니다. ㅏ
재향 군인은 세금 서비스, 인수, 처리, 대출 기관 조사 및 신청 또는 대출을 지불할 수 없습니다.
준비비. 대출은 최대 4% 판매자 양보(판매자 지불 마감)를 포함할 수 있습니다.
비용).
판매자 할인 및 4% 한도 적용됨
구매자의 VA 펀딩 수수료 지불
구매자의 재산세 및/또는
보험 선물(예: 텔레비전 또는 전자레인지)
영구 제공을 위한 추가 포인트 지불
금리 매입
임시 제공을 위한 적립금 제공
금리 매입
신용 잔액 또는 판결을 대신한 지불
구매자
판매자 양보로 간주되지 않음
구매자의 마감 비용 지불
적절한 포인트 지급
시장
by usezloan | Dec 20, 2021 | Financial study
융자지식 258- FHA PROGRAMS
4.8 FHA PROGRAMS
FHA offers a number of programs to meet the needs of eligible borrowers. Several popular programs
include:
• 203(b) Home Mortgages: FHA’s primary program, 203(b) is a fixed-rate program used to
purchase or refinance one-to-four-unit family dwellings.
• 234(c) Condominium Mortgages: An FHA condo loan, also known as Section 234(c), is a
mortgage insured by the FHA, which is designed to assist people who are getting into a new
condo.
• 203(k) Rehab Mortgage: Section 203(k) insurance enables homebuyers and homeowners to
finance both the purchase (or refinancing) of a house and the cost of its rehabilitation
through a single mortgage or to finance the rehabilitation of their existing home.
• 251 Adjustable-Rate Mortgages: The 251 program is based on 203(b), with the added feature
of an adjustable rate. FHA offers a number of different types of ARMs, including one-, three-,
five-, seven- and ten-year versions.
• Energy Efficient Mortgages: These loans are allowed for improvements to existing and new
construction properties to increase their energy efficiency. Financing is the greater of 5% of
the loan or $4,000, with the maximum capped at $8,000.
• 245(a) Growing Equity Mortgages and 245 Graduated Payment Mortgages: Similar in
structure, these programs are intended to assist borrowers by lowering the initial costs of
their mortgage. Payments increase each year, so the programs are best for borrowers
expecting a steady increase in their income over time.
• 2-1 Buy Downs: FHA permits borrowers to buy down the rate on their fixed-rate loan.
Lenders are required to qualify the borrower at the note rate and not the buy down rate. In
this type of buy down, the borrower deposits funds in an escrow account in order to offset
lower interest.
• 203(g) Officer and Teacher Next Door: The 203(g) program is intended to revitalize
communities by offering homes for sale at a 50% discount off the HUD appraised value to
teachers, law enforcement officers and firefighters/EMTs. HUD requires a mortgage
agreement to be signed for the discounted amount although no payments or interest is
charged as long as the borrower fulfills a three-year owner occupancy requirement.
The Federal Housing Administration (FHA)
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory
FHA Single Family Housing Policy Manual 4000.1.
https://www.hud.gov/sites/documents/40001HSGH.PDF
https://www.hud.gov/program_offices/housing/fhahistory
https://www.hud.gov/sites/documents/40001HSGH.PDF
by usezloan | Dec 1, 2021 | Financial study
융자지식 257- GOVERNMENT-FHA LOANS
4.4 FHA LOANS
Federal Housing Administration (FHA) is a loan insurance program created by the Homeowners Act of
1934 to provide borrowers with an opportunity for affordable financing by allowing them to obtain
financing with a minimal down payment. FHA is NOT an institutional lender; therefore, it does not
lend money. Instead, the FHA insures lenders will receive 100% of the loan balance due, should the
borrower default on their mortgage.
In 1965, the FHA became a part of the Department of Housing and Urban Development (HUD).
Advantages of FHA loans include low down payments, no prepayment penalties, and fee limits on
closing costs. For purchases involving an FHA loan, the property must be an owner-occupied, one-tofour-unit residence.
FHA Credit Score and Down Payment Requirements
The amount a borrower will need for a down payment will depend on their credit score based on the
following:
• Minimum credit score of 580 – Down payment: 3.5%
• Credit score 579 to 500 – Down payment: 10%
• Credit Score below 500 – Not eligible for FHA Financing
4.5 FHA GUIDELINES AND BENEFITS
● FHA Occupancy – The borrower must occupy the property within 60 days after closing to be
compliant with the terms of the note and mortgage and plan to occupy the property for at
least one (1) year.
● Assumable – FHA loans are assumable, meaning a new buyer may take over the payments of
the existing mortgage holder, subject to approval of the loan servicer and HUD credit
guidelines. The process of releasing the original borrower and substituting the new mortgagor
is known as novation.
● FHA Qualifying Ratios – In general, in order to obtain an FHA loan, the monthly mortgage
payment cannot exceed 31% of the borrower’s income (front-end ratio) and must have total
monthly debt obligations of no more than 43% (back-end ratio) of his or her income.
● Seller concessions – Sales concessions are limited to 6% of the sales price, or else they are
treated as inducements to purchase, which results in reduction of the mortgage.
● FHA mortgage payments are due on the 1st and are late after the 15th of the month.
80 | P a g e
● The maximum late charge is 4% of the P&I Only.
● No prepayment penalties
● The maximum allowable term on FHA/VA loans is 30 years.
● Loan amounts reviewed every three years. For example, The Federal Housing Administration
has updated its new schedule of loan limits for 2020, with most areas in the country set to
experience an increase. The national loan limit for one-unit homes will be $510,400 in 2020,
up from $484,350 this year. The lenders set the interest rates, not FHA or HUD.
● Appraisal Requirements. The appraiser is required to follow HUD/FHA guidance and comply
with the Uniform Standards of Professional Appraisal Practice (USPAP) when completing
appraisals of property used as security for FHA-Insured mortgages.
● Anti-“Flip” Policy – FHA financing is not available if a borrower is purchasing a home from a
seller that recently bought the property within the past 90 days and is currently reselling it.
Any sales during this timeframe are considered a “flip”. If the property is sold between 91-180
days after acquisition and the price increase is 100% or more of the acquisition price, a second
appraisal is required at the lender’s expense.
4.6 FHA MORTGAGE INSURANCE PREMIUMS (MIP)
All FHA loan programs require mortgage insurance. FHA mortgage insurance protects the lender or
investor against default by the borrower for the life of the loan. There are two types of mortgage
insurance premiums: Upfront mortgage insurance premiums (UFMIP) and monthly mortgage
insurance premiums. FHA requires borrowers to pay upfront mortgage insurance premium (UFMIP)
of 1.75% of the loan amount. This amount can be paid at closing or financed into the loan.
● The UFMIP is calculated by multiplying the loan amount by a factor and then collecting that
amount at closing.
● It can be paid by the borrower or the seller (for the borrower). The FHA UFMIP is currently
1.75% of the loan amount for ALL forward mortgages and either 0.5% or 2.50% for HECM
(reverse) mortgage transactions, depending upon the amount advanced in the first 12 months
after closing.
● Monthly MIP is calculated by multiplying the base loan amount by a factor, then dividing by 12.
● The borrower pays the MIP as part of the monthly mortgage payment, along with principal,
interest, taxes and insurance (PITI).
4.7 FHA TOTAL SCORECARD
FHA has an automated underwriting system that compares borrowers’ profiles to other similar
borrowers’ profiles in a database. This system is called Total Scorecard. Depending on the
performance of borrowers in the database, the score card will recommend loan approval or denial.
The FHA scorecard is integrated with the Fannie Mae and Freddie Mac automated underwriting
vehicles.
FHA’s “5” C’s of Underwriting:
1 Credit – evaluated by looking at the borrower’s credit report
2 Capacity – refers to the borrower’s “ability” to repay the debt based on sufficient income
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3 Cash – refers to borrower’s ability to make the required down payment, pay for closing cost,
required reserves, etc.
4 Collateral – the property being mortgaged as security for the loan
5 Character – borrower’s willingness to repay the debt (different than the borrower’s “ability”
to repay the loan
by usezloan | Nov 30, 2021 | Financial study
융자지식 256- GOVERNMENT (FHA, VA, USDA)
4.3 GOVERNMENT (FHA, VA, USDA)
There are three types of government-related loans that are integral parts of the mortgage industry:
• Federal Housing Administration (FHA) loans
• Veterans Affairs (VA) loans
• United States Department of Agriculture (USDA) loans
FHA loans insure lenders in the event of borrower default, and VA and USDA loans provide a
guarantee to lenders in the event of borrower default.
by usezloan | Nov 30, 2021 | Financial study
융자지식 255- CONVENTIONAL/NON-CONFORMING LOANS
4.2 CONVENTIONAL/NON-CONFORMING LOANS
Loans that do not meet the conventional conforming loan standards because the loan amount is too
large, are referred to as non-conforming loans or jumbo loans. Non-conforming loans are higher risk
as they do not meet the Fannie Mae and Freddie Mac purchasing requirements. These products carry
higher interest rates because they are harder to sell to investors on the secondary market.
There are two main reasons why a loan would be classified as nonconforming: The size of the loan
and the credit quality of the borrower. Examples of non-conforming loan include:
● Jumbo loans, which exceed the loan limits established by Fannie Mae and Freddie Mac.
● Alt-A Loans, which are non-conforming as a result of the credit risk associated with the
borrower. Unlike a jumbo loan, where the loan is nonconforming because of the size of the
loan, an Alt-A loan represents increased risk to the lender because the borrower is unable to
meet underwriting standards for a conforming loan. Still, the borrower’s credit is not so poor
as to require a subprime loan. Many Alt-A loans also required less verification of income and
assets than many other loans.
● Subprime loans (B/C Borrowers). When a mortgage applicant’s credit history reflects
significant derogatory issues or the loan is otherwise ineligible for sale to Fannie Mae, Freddie
Mac or other prime investors because of a combination of credit and documentation issues, it
is classified as a subprime loan and typically carries a higher degree of risk.
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