Best VA Loan Lenders
There are many reasons why VA loans typically outperform other loan programs in terms of foreclosure rates and payment delinquencies. But one of the main reasons is due to the lender approved to underwrite VA loans. VA loan guidelines, while relatively relaxed compared to other low down payment loan types are consistent and proven reliable over the years.
The VA takes great care when considering who can and cannot underwrite VA mortgage loans. What are some of the qualities the best VA lenders? There are some initial, basic requirements including the vetting of a lender’s corporate officers, loan officers, loan processors and underwriters. The VA will also review a recent corporate credit report and research a database which contains the names of individuals and companies who are barred from working with government entities.
Yet the coveted status a VA lender receives is called the Nonsupervised Automatic Authority, or a Nonsupervised Lender. This particular status is awarded after a lender has originated VA loans for the past two years and has met the minimum number of VA loans over the previous year.
VA lenders must also employ an experienced VA underwriting team with at least three years of VA underwriting experienced or an underwriter who has attained the Certified Residential Underwriter designation.
A nonsupervised VA lender must also show an adjusted net worth of $250,000 and have unrestricted credit lines totaling at least $1 million.
When a lender attains this special nonsupervised designation, the lender is free to underwrite the loan, order a VA-approved appraisal as well as fund and sell the mortgage loan on the secondary market. If you’re exploring a VA loan for your purposes, make sure you’re working with a lender who has their nonsupervised authority granted by the VA. Doing so insures you’re working with an experienced, dedicated VA lender.
