Safe-7HR-CE-19 Module 7

Module 7: Nontraditional VA Mortgage
Programs, Part 2

Module 7: Nontraditional VA Mortgage Programs, Part 2
7.1 Nontraditional VA Mortgages: ARMs, GPMs, GEMs, and Interest
Rate Buydowns
 Adjustable-Rate Loans
 Basic Features of ARMs
 Initial Interest Rate and Payment
 Adjustment Period
 Interest Rate
 Underwriting an ARM

Rate Buydowns (Continued)
 Graduated Payment Mortgages (GPMs)
 Acceptable Use of GPMs
 Maximum Loan Amount and down Payment Required
 New Construction or Existing Homes Not Previously Occupied
 Amortization
 Calculation of Monthly Installments
 Annual Percentage Rate (APR) Calculation
 Underwriting Considerations
 Veteran’s Statement
 Other Requirements

Rate Buydowns (Continued)
 Growing Equity Mortgages (GEMs)
 Amortization Examples
 Underwriting
 Loans Involving Temporary Interest Rate Buydowns
 Escrow Requirements
 Qualifying the Borrower

7.2 Nontraditional VA Mortgages: Construction, Repair, and Energy-
efficient Loans
 Construction/Permanent Home Loans
 Amortization
 What the Builder Must Pay
 Fees the Veteran Can Pay
 Interest Rate
 Funding Fee and Loan Reporting
 Loan Guaranty Certificate
 If Loan Proceeds Are Not Fully Dispersed

efficient Loans (Continued)
 VA Energy-Efficient Mortgages
 Requirements for an EEM
 Borrower Notice on the Notice of Value
 Underwriting Considerations for EEMs
 Documentation Required with Closed Loan Package
 Calculation of the Guaranty and Entitlement Use
 Calculation of the Funding Fee
 Improvements Not Completed Before Closing
 Reimbursement to the Veteran out of IRRRL Proceeds
 Loans for Alteration and Repair

efficient Loans (Continued)
 Supplemental Loans
 Required Lien and Maximum Loan Term
 Prior Approval of the VA or Automatic Loan Closing
 Procedures
 Guaranty and Entitlement
 Additional Procedures

7.3 Nontraditional VA Mortgages: Multiple Borrowers, Farm and
Manufactured Home Loans, and Loans on Trust Lands
 Joint Loans
 Joint Loan Terminology
 Occupancy
 How Many Units Can the Property Have?
 Which Joint Loans Require Prior Approval?
 Underwriting a Joint Loan
 Calculating the Guaranty and Entitlement Use on Veteran/Nonveteran Joint Loans
 Calculating the Guaranty and Entitlement Use on Two Veteran Joint Loans
 Farm Residence Loans
 Underwriting

7.3 Nontraditional VA Mortgages: Multiple Borrowers, Farm and
Manufactured Home Loans, and Loans on Trust Lands (Continued)
 Loans for Manufactured Homes Classified as Real Estate
 Allowable Loan Purposes and Calculation of Maximum Loan Amount
 Loans to Native American Veterans on Trust Lands
 Benefits of a Native American Veteran Direct Loan (NADL) [NADL Fact Sheet]
 Requirements to Obtain a NADL [NADL Fact Sheet]
 Veterans Who Do Not Have To Pay the Funding Fee

7.4 Housing Grants for Disabled Veterans
 Specially Adapted Housing (SAH) Grant
 Ways to Use SAH Grants
 Special Housing Adaptation (SHA) Grant
 Ways Veterans can Use SHA Grants
 Eligibility
 Benefit
 Applying for the Grant

Safe-7HR-CE-19 Module 7

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Safe-7HR-CE-19 Module 7