e. Underwriting Special Types of Loans

The underwriting standards and procedures explained in this chapter apply to these special types of loans generally.  However, some special underwriting considerations also apply and can be found as follows:

Type of Loan

Chapter

Section

Joint Loans

7

1

Energy Efficient Mortgages (EEMs)

7

3

Graduated Payment Mortgages (GPMs)

7

6

Growing Equity Mortgages (GEMs)

7

7

Loans Involving Temporary Interest Rate Buydowns

7

8

Farm Residence Loans

7

9

f. Refinancing Loans

While the underwriting standards detailed in this chapter apply to “cash-out” refinances, IRRRLs generally do not require any underwriting. 

IRRRLs made to refinance VA loans 30 days or more past due must be submitted to VA for prior approval.  It must be reasonable to conclude that

·   the circumstances that caused the delinquency have been corrected, and

·   the veteran can successfully maintain the new loan.

Reference:  See chapter 6 for details on all types of refinancing loans.