The VA Documentation Checklist for Loan Prospector feedback messages focus on the Documentation Checklist to guide the underwriting analysis. These messages appear on the Documentation Checklist section.
Updated: November 2011
Code
VA Documentation Checklist
S0
Not on Active Duty: Verbal VOE for {employed borrower}.
S1
Not on Active Duty: Most recent 2 years W-2(s) for {employed borrower}.
S6
Not on Active Duty: Most recent 2 years signed individual tax returns, if commission income > 25% of annual income.
S7
Depository Statements: Most recent for each account to verify funds to close.
S8
Source of Funds to Close: If sales price > appraised value, then verify source of funds to pay difference. If down payment plus closing costs > 4% of appraised value, then verify source of funds.
S9
Proof of Payoff: Or repayment plan for judgments on credit report if applicable.
SF
Employment Gaps: Explain if > 60 days.
SK
Balance Sheet and YTD P&L Statement: If > 7 months have elapsed since business tax year ending date, and income to {self-employed borrower}, from each individual business is > 5% of his/her stable monthly income.
SL
Employment Gaps: Explain if > 30 days.
T0
Lender is responsible for documenting any situations not addressed on this feedback certificate according to the VA Lender's Handbook.
T3
Mortgage Reference: Most recent 12 payment history if not on credit report.
T4
Rental Reference: Most recent 12 month rental history if not on credit report.
T5
Explanation for Derogatory Credit.
T7
Depository Statements: Most recent 2 months for each account to verify funds to close.
VP
If income to borrower from an individual business is greater than 5% of borrower's stable monthly income, obtain most recent 2 years signed federal business tax returns for each business for self-employed borrower, {self-employed borrower}.
VQ
If credit report shows a contingent mortgage debt, obtain transfer of title and assumption or divorce agreement and do not count debt in borrower's ratios.
W3
Alimony/Child Support Income: Most recent 3 months bank statements or canceled checks or court payment record and evidence of 3 years continuance if using income to qualify.
WR
Executed HUD-1: Or equivalent closing statement if sale of home. If relocation, executed buyout agreement and closing statement.
WX
Reserves: Verify all submitted to LP.
WY
Paystub: Most recent YTD documenting 1 full month earnings for {employed borrower}.
