As COVID-19 has an increasing impact in Virginia and across the world, we renew our commitment to our mission of providing housing to Virginians. Safety is at the top of our list. Virginia Housing understands the impact on borrowers, businesses, and loan originations. The purpose of this communication is to address questions related to originating and closing a loan to be purchased by Virginia Housing and/or loan with an MCC. The table below outlines temporary guidance allowed. Originating Lenders must practice due diligence to ensure they continue to lend in a prudent and responsible manner.
The Originating Lender is responsible for ensuring effective dates set forth are followed. We understand that given the environment requirements may change. It is up to the Originating Lender to stay up to date on any additional guidance or changes provided by the agencies and insurers and follow as instructed. If there is an instance where Virginia Housing has an additional requirement, we will make every effort to communicate it as quickly as possible.
Conventional Program
Follow the guidance set forth in Fannie Mae’s Lender Letters 2020-03 and 2020-04 with the addition of what is listed under "Additional VHDA Specific Requirement".
If applicable, the Originating Lender must also ensure the MI Company has accepted Fannie Mae’s Lender Letters.
Additional VHDA Specific Requirement
In addition to Fannie Mae’s letters, the following applies:
Appraisal Waivers
- It is rare that an appraisal waiver is offered through AUS since the LTVs tend to be high for VHDA loans, however in the event it is offered through the AUS engine, VHDA will not accept an appraisal waiver.
- Contact your Business Development Officer if you have concerns about a specific loan where the appraisal waiver was offered.
Tax Transcripts
- Tax transcripts continue to be required on Conventional loans unless all the income is validated through an AUS data validation system. Obtaining tax transcripts directly from the IRS is acceptable.
- The Originating Lender may close a loan without tax transcripts, however is still responsible for providing them to VHDA for purchase.
- If the Originating Lender continues to have issues obtaining tax transcripts after closing, please contact VHDA, who may consider purchasing a loan without them, however the Originating Lender is still responsible for providing tax transcripts to VHDA post-purchase if the loan is selected for an audit. This last option should only be considered after all other avenues have been exhausted.
FHA Program
Follow the guidance set forth in FHA Info #20-22 and Mortgagee Letter 2020-05.
Additional VHDA Specific Requirement
No additional requirements, follow FHA guidance.
RHS Program
Follow the guidance set forth in RHS Announcement published 3/27/20 – Single Family Housing Guaranteed Program Temporary Exceptions to Interior Inspection Appraisals and Verbal VOE in Relation to COVID-19.
Additional VHDA Specific Requirement
No additional requirements, follow RHS guidance.
VA Program
Follow the guidance set forth in VA Circulars 26-20-10 and 26-20-11.
Additional VHDA Specific Requirement
No additional requirements, follow VA guidance.