Module 6

1. Module 6: Nontraditional VA Mortgage
Programs, Part 2

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
 Index
 Margin
 Interest Rate Adjustments
 Underwriting an ARM

3. Module 7: Nontraditional VA
Mortgage Programs, Part 2
7.1 Nontraditional VA Mortgages: ARMs, GPMs,
GEMs, and Interest Rate Buydowns
 Graduated Payment Mortgages (GPMs)
 Acceptable Use of GPMs
 Maximum Loan Amount and down Payment Required
 Amortization
 Calculation of Monthly Installments
 Annual Percentage Rate (APR) Calculation
 Underwriting Considerations
 Veteran’s Statement
 Other Requirements

4. Module 7: Nontraditional VA
Mortgage Programs, Part 2
7.1 Nontraditional VA Mortgages: ARMs, GPMs,
GEMs, and Interest Rate Buydowns
 Growing Equity Mortgages (GEMs)
 Amortization Examples
 Underwriting
 Loans Involving Temporary Interest Rate Buydowns
 Escrow Requirements
 Qualifying the Borrower
 Other Requirements

5. Module 7: Nontraditional VA
Mortgage Programs, Part 2
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

6. Module 7: Nontraditional VA
Mortgage Programs, Part 2
7.2 Nontraditional VA Mortgages: Construction,
Repair, and Energy-efficient Loans
 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

7. Module 7: Nontraditional VA
Mortgage Programs, Part 2
7.2 Nontraditional VA Mortgages: Construction,
Repair, and Energy-efficient Loans
 Loans for Alteration and Repair
 Supplemental Loans
 Required Lien and Maximum Loan Term
 Other Requirements
 Prior Approval of the VA or Automatic Loan Closing
 Procedures
 Guaranty and Entitlement
 Additional Procedures

8. Module 7: Nontraditional VA
Mortgage Programs, Part 2
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

9. Module 7: Nontraditional VA
Mortgage Programs, Part 2
7.3 Nontraditional VA Mortgages: Multiple
Borrowers, Farm and Manufactured Home Loans,
and Loans on Trust Lands
 Farm Residence Loans
 Underwriting
 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

10. Module 7: Nontraditional VA
Mortgage Programs, Part 2
7.4 Housing Grants for Disabled Veterans
 Specially Adapted Housing (SAH) Grant
 Special Housing Adaptation (SHA) Grant
 Eligibility
 Benefit
 Applying for the Grant