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Sun West Streamlines Underwriting Guidelines for VA IRRRLs

Dear Licensed Partner,

In our continued commitment to provide our partners with common-sense underwriting and to protect the interest of our valued Veterans, Sun West has updated its guidelines for VA IRRRLs submitted on or after April 21, 2015 as follows:

A) VA IRRRLs must meet ALL of the following requirements:

  1. The veteran has not been more than (30) days past due during the six (6) months preceding the new loan’s closing date
  2. The recoupment period for all allowable fees and charges (not including prepaid) financed or paid at closing does not exceed (60) months

B) In cases where all of the above conditions are not met but the recoupment period for all allowable fees and charges (not including prepaid) financed or paid at closing is no more than 120 months, Sun West will require the following minimal documentation to verify the Ability-To-Repay (ATR): 

  1. For salaried/hourly paid borrowers (W2 borrowers): Most recent pay stub(s) reflecting 30 days year-to-date earnings and signed 4506-T form for all borrowers
  2. For fixed income borrowers: Copy of Award letter/Benefit Statement or most recent month’s bank statement reflecting receipt of income
  3. For self-employed borrowers: Most recent two years’ income tax returns with all schedules and a signed 4506-T form for IRS -1040  

If a borrower’s Debt-to-Income (DTI) ratio exceeds 41%, then the residual income must be 120% of the VA’s residual income requirement. The maximum DTI ratio allowed is 50%.


  1. Sun West will not accept loans with recoupment periods exceeding 120 months 
  2. Loan submission packages must include a Uniform Residential Loan Application (Form 1003) with at least two years of employment details and a tri-merged credit report. Additional conditions and/or income documentation may be required based on the complexity of the loan package.


If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.


Sun West Mortgage Company, Inc.
18000 Studebaker Road, Suite 200
Cerritos, CA 90703
Phone: (800) 453-7884
SW-1: Our New No Overlays Program


Equal Housing Opportunity This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.