VA Cash-Out Guideline Update
(Applicable to Wholesale Channel)
Sun West Mortgage Company, Inc. will be updating its product guidelines for VA Cash-Out Refinance transactions based on the requirements outlined in the VA Circular 26-18-30 and VA Circular 26-18-30 - Change-1. The following guidelines are effective for all VA Cash-Out refinances with an application date on or after February 15, 2019.
Summary of Changes:
Particulars | Guidelines |
Type of Cash-Out Refinance |
Dept. of VA has introduced two types of cash out refinances:
|
Loan-to-Value (LTV) calculation | LTV will be calculated based on the total loan amount (including funding fee if financed into the loan). The maximum LTV may not exceed 100% of the reasonable value of the property. |
Net Tangible Benefit Test | All cash-out refinance loans must satisfy at least one of the eight NTB requirements mentioned in this VA circular. |
Disclosure on Net Tangible Benefit and Loan Comparison |
A disclosure must be provided to the borrower within three business days of application which, at a minimum, must:
|
Seasoning Requirement |
A loan is considered seasoned if the Note date of the new loan is the later of the date that is:
|
Months to Recoup |
Applicable to only Type I refinance loans made to refinance an existing VA-guaranteed home loan:
|
For additional questions not answered by the guideline, please email Sun West’s Underwriting Scenario Desk at uwscenarios@swmc.com for more information.
If you have any questions, please call our Underwriting Hotline at (800) 241-7113.
6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884
This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.