Tag: VA

Child Support as Reduction of Income vs. Liability

Question: Will VA allow child support to be deducted from the income, or must it always be treated as a liability? Answer: Spousal support may be treated as a reduction in income on VA Form 26-6393, Loan Analysis.Child support payment is treated as a liability on VA Form 26-6393, Loan Analysis. Reference: VA Lenders Handbook, […]

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Using Entitlement of Ex-Spouse

Question: Another lender is telling my client that she can go VA because her ex-spouse [not deceased, divorced] has entitlement and they have a child together.  I have not heard of this, is this true? Answer: VA only allows surviving spouses to use their former spouse’s eligibility under certain conditions. VA does not allow ex-spouses […]

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Seller Increasing the Price Due to a Delayed Closing

Body Question: Our VA client contracted for a home with a specified closing date.  The sale of their present property fell through so our client requested a 30-day extension for the contract on their new home.  The seller agreed to the extension if our client agreed to pay $2,000 more.  Is this allowed? Answer: VA […]

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VA Circular 26-20-36, Changes to Processing Site Condominiums in the State of Michigan, September 18, 2020, Effective immediately.

Written by: Tracey Rumsey, Staff Writer Great news for those of you that work with VA Condos in Michigan!  Be sure to read this update about how life just got easier! Rule Synopsis: Effective date September 18, 2020 Summary Site Condominiums in the State of Michigan will be processed in the same manner as a […]

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Popular VA COVID Question…Answered! If I had to exercise my right to forbearance during COVID and am now back to work, can I refinance my loan? To refinance under the VA Interest Rate Reduction Loan, or a VA Cash-Out, a borrower must have made at least 6 consecutive monthly payments on the loan being refinanced. So, if you made 6 consecutive payments prior to forbearance, you can refinance now.  If you made fewer than 6 consecutive payments prior to forbearance, then you will need to make 6 consecutive payments after forbearance.  Let’s chat and plan your strategy! 

Popular VA COVID Question…Answered! If I had to exercise my right to forbearance during COVID and am now back to work, can I refinance my loan? To refinance under the VA Interest Rate Reduction Loan, or a VA Cash-Out, a borrower must have made at least 6 consecutive monthly payments on the loan being refinanced. So, if you made 6 consecutive payments prior to forbearance, you can refinance now.  If you made fewer than 6 consecutive payments prior to forbearance, then you will need to make 6 consecutive payments after forbearance.  Let’s chat and plan your strategy! 

Related Article Title: VA Circular 26-20-25 Change 1, Impact of CARES Act Forbearance on VA Purchase and Refinance Transactions, September 15, 2020, Effective immediately. Written by: Tracey Rumsey, Staff Writer How to guide your clients who exercised their Forbearance rights under the CARES Act will be an ongoing topic for mortgage professionals.  In this update […]

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