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USAA MoversAdvantage? Preferred Agents training tool Standard Documentation and Requirements When Obtaining a VA Loan

For Active Duty

Original Certificate of Eligibility (COE). A copy from the VA website is acceptable with a signed VA Request form (this is provided with the application package by USAA).

ETS date verification when it is within 12 months of closing or it is listed as an indefinite ETS ? A copy of the member's PCS orders or most recent Active duty orders which demonstrate the veteran's ETS date or RTD (rotational date). OR ? Documentation that the service member has already re-enlisted or extended his/her period of active duty to a date beyond the 12-month period following the projected closing of the loan OR ? Original Statement of Service which include the ETS (estimated date of separation OR ? A statement from member that he/she intends to re-enlist beyond a 12-month period AND a statement from the veteran's commanding officer confirming the borrower is eligible to re-enlist and there is no reason to believe that such re-enlistment will not be granted.

True copy of most recent LES (leave & earnings statement) and the source of all discretionary allotments (example: car payment, deposit to savings).

When PCS orders are provided they should also satisfy the member's intentions to occupy the property as their primary residence. (If this is a recent or upcoming PCS move then the address listed as their new duty station should be within reasonable distance from the subject property.)

Most recent ONE month bank statement (with all pages including blank pages, the borrower's name, the bank's name and a full 30 days transaction history) to verify the amount of liquid assets necessary to close. All assets disclosed on the 1003 (loan application) that were used to qualify them for the loan need to be verified.

Copy of fully executed contract. If any personal property or non-realty items are listed on the contract, the following statement must be included on the contract: all personal property/non-realty items listed on the contract are being conveyed at no value. Any changes to the terms of the contract throughout the process of the loan require an executed addendum or amendment to the contract by the members and sellers.

When the member is active military reserves The income must be carefully evaluated between the reserve income and borrower's nonreservist income (current employment) in terms of income stability and reliability. The lesser of the two incomes will be used to qualify. Using the higher income may present a hardship to the borrower if they are not returning to their non-reservist employment immediately. A full VOE for civilian employer with return date, position, and salary can be submitted to assist with determining the member's salary information Pay stub for civilian employment (regardless of the last date worked prior to active duty) Obtain a copy of orders to verify how long active duty reservist income is going to continue.

? NOTE: Active duty reserves does not qualify as active duty military with regards to previous employment documentation or lack there of.

When the member relies on military reserves their employment follows Part-Time Employment income. ? The income must be regular and predictable. ? There must be a reasonable likelihood that it will continue in the foreseeable future based on its compatibility with the hours of duty: How long the member has been employed under such arrangement is a strong indicator on sustainability going forward. A minimum of a two years is required to consider the income for qualifying. Two year's W-2s are required

No Longer Active Duty

Copy of DD214. Certificate of release or discharge from Active Duty. (The member's training, education, and experience is considered when veterans are discharging from active duty and moving into civilian employment. The member may also provide a copy of the unconditional employment contract or the signed offer letter which indicates the member's title, salary, and anticipated start date in order to support the stability and reliability of the income going forward.)

No gaps in employment over 60 days (an employment gap greater than 60 days requires a written explanation) If the member has had multiple jobs in the past 2 years, VA will require an explanation of the job correlation. Temporary employment is not acceptable. Employment as a contractor is not acceptable unless the contract is good for 2 to 3 years after closing. (Two

years employment history as a contractor is required. Borrower must also provide 2 years Tax Returns to include all w-2's, 1099s and all schedules.) Original Certificate of Eligibility (COE). A copy from the VA website is acceptable with a signed VA Request form (this is provided with the application package by USAA).

VA documentation and general guidelines. February 8, 2013 Page 1

 When the Borrower(s) has been with the same employer longer than 30 days the most recent pay stub which includes regular income that is consistent with the YTD calculation. If the member is employed for less than 30 days all available paystubs are required. (1 pay stub if paid monthly, 4 pay stubs if paid weekly). Pay stubs must be in consecutive order and must be dated within 30 days of application. USAA will perform a verbal verification of employment.

True copy of most recent W-2 statements for the past 2 years. Most recent ONE month bank statement (with all pages including blank pages, the borrower's name, the bank's

name and a full 30 days transaction history) to verify the amount of liquid assets necessary to close. All assets disclosed on the 1003 (loan application) that were used to qualify them for the loan need to be verified. Copy of fully executed contract. If any personal property or non-realty items are listed on the contract, the following statement must be included on the contract: all personal property/non-realty items listed on the contract are being conveyed at no value. Any changes to the terms of the contract throughout the process of the loan require an executed addendum or amendment to the contract by the members and sellers.

Additional Information

Borrowers that have a contract to purchase a new construction home can apply or convert a pre-approval at any time during the building process. Advise the member: o Of their options and costs for locking-in an interest rate. o That an interior/exterior appraisal is required on all new construction loans when the home is 95% complete (Guideline is that 95% = everything complete on the property except sod, landscaping and appliances). o That a final inspection will then be required once the home is 100% complete. (Note: final inspections will result in an additional fee to be paid by the member beyond the cost of the appraisal).

A Condominium property requires a VA issued Condominium ID prior to the loan going to a processor. If the Condominium property is not VA approved, USAA Mortgage cannot assist with obtaining the ID. Please contact the local VA Regional loan center for guidance.

Please note the average time for a VA appraiser to complete their report is 10 business days, depending upon the state the property is located. After the appraiser has uploaded the report to the VA website the VA underwriters have 5 business days to review and approve the report. Once it is approved, USAA will notify the member if there are any conditions on the Notice of Value (NOV) they may need to be cured prior to closing.

Most properties will require a termite inspection. The following states normally do not require this report unless the appraiser indicates a problem: Alaska, Colorado, Idaho, Maine, Minnesota, Montana, New Hampshire, North Dakota, Oregon, South Dakota, Washington, Wisconsin, and Wyoming. Some areas of New York, Michigan, Vermont will require the inspection.

If the property has a private well or septic, these will need to be inspected and/or repaired prior receiving approval to close.

All NOV conditions from the appraisal are required prior to receiving approval to close. Loan documents cannot be sent until all required NOV items are 100% complete. Bank REO's, Foreclosures, and any property being sold "as-is" may require extensive repairs that must be completed to the satisfaction of a VA licensed appraiser prior to receiving approval to close. USAA cannot lend on collateral that does not meet the minimum property requirements of the VA.

Remind member to review and sign all required fields and return their loan application package and all requested credit documentation within 3 days of receipt. To help facilitate the prompt return of the package, USAA Mortgage provides a postage paid overnight mail envelope for the member to use.

Complete the Contract Cover Sheet and fax with a copy of the fully executed contract and copy of MLS print-out to USAA Mortgage at 866-384-8867. To expedite the process with the VA, the agent must fax this information on the same day of receiving a fully executed contract/agreement. If the member has not converted their preapproval (CCB) to a full loan application, the member must contact USAA immediately and advise they want to convert their CCB. Please note that USAA does not make an outbound call when the fax contract is received.

Agent should access the Realtor Portal weekly to ensure closing is on target. Contact the Agent Help Desk (800-914-9691) for closing delays and/or questions.

While income and asset documentation is not required to start the loan application process, the application cannot be submitted to underwriting without certain minimum documentation that the processor will ask for when they first contact the member. If this documentation is not received in a timely manner the application is subject to cancellation. This policy also applies to subsequent documentation requested from underwriting.

VA documentation and general guidelines. February 8, 2013 Page 2

General information: There are some fees that can never be paid by the veteran Those are: Termite/Pest Inspection Attorney Fee Charged as a Benefit to the Lender Mortgage Broker Fee Realtor Commission Prepayment penalties HUD/FHA Inspection Fees for Builders Please note the termite report must have wet signatures by the buyer and seller and should be paid by the seller up front. ? This is not to come out of the seller concession credit that most sellers give to our buyers. ? The pest inspection should be paid by the seller in the initial stages of the loan. For any questions or additional information, please contact the Cleveland Regional Loan Center at 800-729-5772. These are general guidelines. There may be additional documentation required as the situation dictates

VA documentation and general guidelines. February 8, 2013 Page 3

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