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VA Loan - Not able to show cancelled checks or bank statements

We started to apply for a FHA loan, but our HOA does not do FHA, so we went to VA loan instead. Everything seems fine, but now the question is towards showing paying rent for the last 12 months. The townhome is owned by my parents and we have lived there for 5 years, my parents pays the rent and HOA, we pay the quarterly HOA, now that my parents are selling the townhome to us, we cannot show 12 months worth of cancelled checks, nor bank statements. How do we go around that? Can my parents provide a verification of rent letter notarized and their bank statements or copies of cancelled checks? Would this work? Thank you by rebugioj196 from Haslett, Michigan. Dec 14th 2017 Reply


By the way, this is in the state of CO

Dec 14th 2017
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Not sure why rent verification is required. What are your credit scores?

Dec 14th 2017
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There are a couple ways to work around the VOR (verification of rent. ) from what you have explained there seem to be a couple options. It was kind of vague, is the home in CO. Or MI.? Feel free to contact me via email, text or phone. Dfavorloans@gmail.com or (248)821-4100Thanks , Dan Favor

Dec 14th 2017
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Jack Cyrul (Jack Cyrul)
#4 ranked lender in Michigan - 94 contributions

Different lenders have different verification requirements. In most cases VA does not require rental verification. I would love to help you with your mortgage, call me at 734-395-9027. Jack Cyrul

Dec 15th 2017
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Why would this be a request if VA loans don't have rent verifications?

Dec 15th 2017
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Jack Cyrul (Jack Cyrul)
#4 ranked lender in Michigan - 94 contributions

VA loans, like conventional and FHA are run through a automated underwriting engine called DU before going to an underwriter. If the DU findings do not ask for the rental history then it's not required. Even if the DU findings say a VOR is not required, many lenders have what's called underwriting overlays where they want the VOR no matter what! My primary lender goes off the DU findings. The DU finding are based on your overall credit risk and very from borrower to borrower!

Dec 15th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,428 contributions

More info needed, and unfortunately, they will not accept a letter from your parents.. Everything the underwriter asks for must come from a verifiable source,, and a letter from your parents is not really verifiable.. This is why canceled checks, or 12 months statements showing the transfers are the only acceptable form.. . and through your own admission, your parents makes the payment, so if they did write a letter it would be a false statement.. (which is why lenders do accept letters like this).. The short is that it's quite possible your loan officer can get this condition waived.. however, if your file had to be manually underwritten because of low credit scores or limited credit,, then you will probably need a cosigner.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Dec 15th 2017
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How long do you need to be in your employment to apply for a home loan?

Dec 15th 2017
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Joe Metzler (JoeMetzler)
#19 ranked lender in Minnesota - 3,754 contributions

Typically proof of rent is NOT required in 95% of cases. The only reason that would be required is if the overall file is very weak, and the lender needs to do a manual underwrite of the file, versus a computerized underwrite. My first suggestion is to ask the lender if this is a manual underwrite. If they say no, contact a second VA lender. Finally, proof must always be 'third party', like YOUR bank statements or YOUR cancelled checks. So nothing from your parents would work. For VA loans in MN, WI, and SD, visit me at https://VAMortgageMN.com

Dec 18th 2017
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