k. Active Military Applicant’s Income (continued)

Verification (continued)

If the date is within 12 months of the anticipated date that the loan will close, the loan package must also include 1 of the following 4 items, or combinations of items, to be acceptable:

·   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

·   verification of a valid offer of local civilian employment following the release from active duty.  All data pertinent to sound underwriting procedures (date employment will begin, earnings, and so on) must be included, or

·   a statement from the service member that he/she intends to reenlist or extend his/her period of active duty to a date beyond the 12 month period, plus

·   a statement from the service member’s commanding officer confirming that:

-   the service member is eligible to reenlist or extend his/her active duty as indicated, and

-   the commanding officer has no reason to believe that such reenlistment or extension of active duty will not be granted, or

·   documentation of other unusually strong positive underwriting factors, such as:

-   a down payment of at least 10%

-   significant cash reserves, and

-   clear evidence of strong ties to the community coupled with a nonmilitary spouse’s income so high that only minimal income from the active duty service member is needed to qualify.