k. Active Military Applicant’s Income (continued)

Analysis:  Base Pay

Consider the applicant’s base pay as stable and reliable except if the applicant is within 12 months of release from active duty:

·   Analyze the additional documentation submitted.

·   If the applicant will not be reenlisting, determine whether

-   the applicant’s anticipated source of income is stable and reliable, and/or

-   unusually strong underwriting factors compensate for any unknowns regarding future sources of income.

Verification:  Military Quarters Allowance

To use a military quarters allowance in the underwriting analysis, obtain:

·   DD Form 1747, Status of Housing Availability, indicating that item b (Permanent) or item d of that form applies.  This form serves as notice that:

-   Quarters will not be made available to the applicant, and

-   the applicant is authorized to make permanent arrangements for nonmilitary housing.

Except DD Form 1747 is not required in either of the following circumstances:

·   When the applicant’s duty assignment clearly qualifies the applicant for quarters allowance.

-   Examples include personnel stationed overseas whose families remain stateside, recruiters on detached duty, and military personnel stationed in areas where no on-base housing exists.

·   When VA has established that the waiting lists for on-base housing in a particular geographic area are so long that it is improbable that individuals desiring to purchase off-base housing would be precluded from doing so in the foreseeable future.

·   VA issues a release to all lenders in the jurisdiction to inform them of its determination.

Include an explanation with the loan submission of the circumstances justifying omission of the form.