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Frequently Asked Questions

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Can Veteran purchase a property from his parents and can the parents gift him part of their equity in subject property?

Yes, VA has no restriction on non-arms length transactions. However, gift of equity will be reviewed as reduction in sales price and cannot be used to lower loan-to-value for the purpose of calculating VA funding fees.

Does VA have a rate & term refinance option?

The only refinance options offered by VA are VA interest rate reduction refinance loan (IRRRL) or VA cash out refinance. A refinance that is not a VA IRRRL will be processed as VA cash out refinance regardless of liens being paid off or amount of cash back to Veteran.

Can a Veteran do a cash out refinance on a lien free property?

No, lien free properties are ineligible for Cash out refinance. As per VA guidelines there should be an existing lien on the property that needs to be paid off out of the refinance transaction.

Can a Veteran refinance a property in his own name if he is neither on title and nor on mortgage being paid off?

No, borrower needs to be on the title prior to loan docs to be eligible for new VA financing along with proof that the Veteran is occupying the subject property as a primary residence.

What are requirements of Termite inspection on VA loans?

As per VA guidelines termite inspection reports are required in any of the following cases:
  1. If subject property is located in an area where probability of termite infestation is "very high" or "moderate to heavy" according to termite infestation probability map published in "The council of American Building Officials" (CABO);
  2. If Termite inspection report is required as per VA local requirements for subject state, county or city;
  3. If Appraisal report indicates the probability of Wood destroying pest exist in subject property.

Can person other than Veteran and spouse take title to the subject property?

No, only Veteran and spouse can take title to the subject property.

Can a Veteran use rental income from current primary residence being departed in favor of new primary residence?

Yes, Veteran can use rental income from departing residences. It will be subject to the availability of executed leases to offset the mortgage payment and if there is no indication that property will be difficult to rent. Any positive income cannot be added to qualifying income.

Does VA allow exclusion of un-reimbursed expenses from overall income analysis?

As per VA guidelines un-reimbursed expenses will be deducted from qualifying income in the following cases:
  1. If the borrower is earning commission income which is 25% or more of annual employment income; or
  2. If the borrower reports income from Automobile allowance as part of monthly qualifying income.

What are the maximum VA loan limits for Purchase / Cash-out refinance transaction?

Base county limits for VA loans are $417,000; these limits may be higher for certain high cost areas. VA guidelines have no restrictions on maximum loan amount, however maximum guaranty would be 25% of lesser county limit or Purchase price / NOV (less any previously used entitlement).

Sun West will allow loan amount exceeding VA county limits as long as VA guaranty plus borrower's cash investment / equity covers 25% of lesser of Purchase price / NOV. Refer below example of guaranty calculation:

Example: If subject county limit is $417,000 and property value is $525,000, in this case maximum loan amount allowed will $498,000. The maximum loan amount is calculated by taking 75% of property value ($525,000*.75 = $393,750) and adding VA guaranty to this amount ($104,250).

Can a Veteran with existing VA guaranteed loan purchase another primary residence using VA financing?

Yes, a Veteran can purchase a new primary residence using VA financing as long as the remaining entitlement is sufficient to cover 25% guaranty plus cash investment requirement.

However, veteran may not qualify if new loan amount is less than $144,001 as in this case only basic entitlement will be available for guaranty purposes which is already used by Veteran.

Can a Veteran purchase a new primary residence with higher purchase price, if s/he is planning to sale current primary residence secured by VA guaranteed mortgage in concurrence to purchase of new home?

Yes, a Veteran can purchase a new primary residence with higher purchase price as long as remaining entitlement plus Veteran's cash investment covers 25% of Notice of value. If remaining entitlement is not sufficient we would need final closing disclosure of property being sold and VA form 26-1880 requesting restoration.

Is a loan amount restricted to county limit on VA interest rate reduction refinance loan (IRRRL)?

No, loan amount is not restricted based on county.

Can a new loan amount include closing cost and pre-paid expenses on VA interest rate reduction refinance loan (IRRRL)?

Yes, a new loan amount can include closing cost and pre-paid expenses. However origination fees exceeding 1% of new loan amount and discount points exceeding 2% cannot be included in financed loan amount.

If there are delinquent taxes on subject property, can this be included in new loan amount on VA Interest rate reduction refinance loan?

No, delinquent taxes cannot be included in new loan. If there are any delinquent taxes on the property Veteran will have to bring additional funds at closing equivalent to the amount of delinquent taxes.

Can new interest rate being offered to Veteran on VA interest rate reduction refinance loan (IRRRL) be the same as interest rate on existing loan being refinanced?

No, there has to be reduction in rate being offered except for refinance Adjustable rate note to fixed rate note.

Can Veteran's reduce their loan term with VA interest rate reduction refinance loan (IRRRL)?

Yes, Veterans can reduce their loan term with VA interest rate reduction refinance loan. However if this reduction in term results in increase in housing payment (PITI) of 20% or more then loan must be credit qualified.

Is there any seasoning requirement on VA interest rate reduction refinance loan (IRRRL)?

No, there is no seasoning requirements on VA interest rate reduction refinance loan.

Does VA allow deletion of borrowers from original note on VA interest rate reduction refinance loan (IRRRL)?

No, VA does not allows deletion of borrower except in the following cases:

  1. Deletion due to divorce
  2. Deletion due to death
  3. Deletion due to legal separation

If there is deletion of borrower due divorce / death / Legal separation the remaining borrower will be credit qualified or we will require proof showing they were making payment for last six months.

Does VA allow addition of borrowers on VA interest rate reduction refinance loan (IRRRL)?

No, VA does not allows addition of borrower except in the following cases:

  1. If Veteran was Unmarried on old VA loan, a spouse can be added
  2. If Veteran and spouse were obligated on Old VA loan, a Veteran can delete ex-spouse and add different spouse.

Does VA require any minimum net tangible benefits on VA interest rate reduction refinance loan (IRRRL)?

No, VA does not require a specific amount of reduction in monthly mortgage payments. However the time taken to recoup closing costs, discount points and funding fee (if any) associated with new interest rate reduction refinance loan should not exceed the loan term.

Additionally, loans with months to recoup exceeding 120 months are not acceptable as per Sun West guidelines.

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Consumer Home Loan Mortgages

Consumer Home Loan Mortgages

SWMC offers a wide range of residential home loan mortgage programs to suit different situations such as a purchase, refinance, a property rehabilitation loan or a reverse mortgage at the competitive interest rates.

FHA Purchase at 96.5% Financing, Streamline (Interest Rate Reduction) Refinance, and Cash-Out Refinance, 203(k) Rehabilitation Loan, 203(k) Streamlined Rehabilitation Loan, and the Home Equity Conversion Mortgage (Reverse Mortgage) and USDA Rural Housing mortgages.

If you are a Veteran, Sun West offers you VA guaranteed mortgages for Purchase Loans at 100% Financing, Cash-Out Refinance, and Streamline Interest Rate Reduction Refinance Loans (IRRRL).

You can use our simple mortgage calculator tools to find out your monthly payment, the house you can afford, your refinance options, or the home equity you may be able to access through a reverse mortgage (HECM).

As a full-service mortgage bank, Sun West is one of the few approved direct lenders to provide in-house origination, processing, underwriting, closing, funding, and servicing. Based in California with active presence across the country, Sun West is dedicated to offering exceptional service coupled with integrity, reliability, and experience.

Read More About Consumer Home Loan Mortgages >>
Mortgage Partner Services

Mortgage Partner Services

You can become a partner with Sun West as a Wholesale Mortgage Broker or a Correspondent Lender.

In addition to residential mortgage lending, Sun West also offers FHA multifamily,commercial and portfolio lending services.

As a partner you have access to SunSoft - Sun West's state-of-the-art mortgage loan origination and servicing software. Built on over 30 years of lending and mortgage technology experience, SunSoft is compliant with federal and state requirements.

Sun West is approved by Ginnie Mae as an Issuer, Servicer and Participation Agent. This rare approval enables us to issue securities backed by the full faith and credit of the United States. Consequently, Sun West is able to offer its partners and borrowers the competitive interest rates in the market.

Read More About Wholesale Lending >>

Read More About Correspondent Lending >>
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Mortgage Loan Calculators

Loan Calculators

  • FHA Purchase Calculator
    Calculates the monthly mortgage payment for your home purchase loan, as per prevailing interest rates.
  • Reverse Mortgage Calculator
    Calculates and compares the available options for HECM products.
  • Monthly Payment
    Calculates your payment for different loan amounts, interest rates, and amortization terms.
  • How Much Can I Afford?
    Calculates your maximum mortgage loan amount based upon the monthly home loan payment, interest rate, and term that you enter.
  • Should I refinance?
    Just enter information about your current mortgage loan and the new loan you're thinking of taking, and we'll calculate your savings.

  • Estimated Cost for an appraisal
    Just enter basic information about the loan and property type, and we'll calculate the estimated cost of an appraisal.
Mortgage Partner Resources

Partner Resources

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Press Releases

Press Releases

  • 08/20/2015: Sun West Mortgage Company, Inc. Named Million Dollar Lender by USDA Rural Development Read More..
  • 07/15/2014: Ivan 'Pudge' Rodriguez to Make His Debut at the 25th Annual American Century Golf Championship, Sponsored by Sun West Mortgage Company, Inc. Read More..
  • 07/1/2014: USDA Rural Development Names Sun West Mortgage Company, Inc. Lender of the Year Read More..
  • 04/28/2014: FHA 203(k) and PowerSaver Loan Offerings From Sun West Mortgage Company, Inc. Extended With New FHA PowerSaver 203(k) Program as a Single Home Improvement Solution for Homebuyers Read More..
  • 02/24/2014: Sun West Mortgage Company, Inc. Continues National Expansion Read More..
  • 07/23/2013: Sun West Mortgage Company, Inc. Offers Homeowners Access to the Hardest Hit Fund Relief in All Eligible States and D.C. Read More..
  • 05/15/2012: Sun West Mortgage Company Partners with EGIA to Introduce the FHA PowerSaver Loan Program Read More..
  • 12/16/2011: Sun West Mortgage Company and the Cerritos Sheriff Station team up to supply little boys and girls toys this holiday Read More..
  • 10/03/2011: Sun West Mortgage Increases Its Reach in New Jersey Read More..
  • 4/22/2011: Variable Servicing Margins on Different Participations of the Same Loan for HMBS Issuers Announced by Sun West Mortgage Read More..
View All Press Releases >>
Lender Alerts

Lender Alerts

  • 4/6/2017: Lock Desk and Trading Desk Closure Notification Read More..
  • 3/2/2017: Sun West Introduces SeeMyLoanStatus Read More..
  • 2/22/2017: Close more Loans: Reduced Overlay on Conventional Loans Read More..
  • 2/13/2017: Disaster reported by FEMA in the state of Louisiana Read More..
  • 2/13/2017: Presidents' Day Closing Notice 2017 Read More..
  • 2/1/2017: Disaster reported by FEMA in the states of Georgia and Mississippi Read More..
  • 1/10/2017: Martin Luther King Jr. Day Hours of Operation Read More..
  • 1/9/2017: Non-Agency Premium Loan Programs Read More..
  • 12/28/2016: Sun West’s Implementation of Truth in Lending (Regulation Z) ​Annual Threshold Adjustments Read More..
  • 12/23/2016: 2017 Loan Limits for Government Loan Programs Read More..
View All Lender Alerts >>
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