Sun West Streamlines Underwriting Guidelines for VA IRRRLs
Dear Licensed Partner,
In our continued commitment to provide our partners with common-sense underwriting and to protect the interest of our valued Veterans, Sun West has updated its guidelines for VA IRRRLs submitted on or after April 21, 2015 as follows:
A) VA IRRRLs must meet ALL of the following requirements:
B) In cases where all of the above conditions are not met but the recoupment period for all allowable fees and charges (not including prepaid) financed or paid at closing is no more than 120 months, Sun West will require the following minimal documentation to verify the Ability-To-Repay (ATR):
If a borrower’s Debt-to-Income (DTI) ratio exceeds 41%, then the residual income must be 120% of the VA’s residual income requirement. The maximum DTI ratio allowed is 50%.
If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.
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.