When applying for a VHDA mortgage loan, originating lenders are required to submit a cover letter along with the other necessary documents. This cover letter serves as an introduction to the loan file and provides important information about the borrower and the loan being requested.
What is VHDA?
VHDA stands for Virginia Housing Development Authority, which is a state agency dedicated to providing affordable housing opportunities to Virginians. VHDA offers a variety of loan programs for first-time homebuyers, veterans, and low-to-moderate income borrowers.
Why do I need a cover letter for my VHDA mortgage application?
The cover letter is an important part of your VHDA mortgage loan application because it provides the VHDA underwriter with additional information about you and your loan request. It also helps the underwriter understand the context of the loan file and can help expedite the loan approval process.
What should be included in the cover letter?
The cover letter should include the following information:
- Borrower’s name and contact information
- Loan officer’s name and contact information
- Type of loan being requested (e.g., FHA, VA, conventional)
- Loan amount and loan-to-value ratio
- Purpose of the loan (e.g., purchase, refinance)
- Property address and description
- Borrower’s employment history and income
- Borrower’s credit history and scores
- Explanation of any derogatory credit or other issues
- Any other relevant information about the borrower or the loan
How should I format the cover letter?
The cover letter should be formatted in a professional and organized manner. It should be typed and printed on company letterhead, if possible. The information should be presented in a clear and concise manner, and any supporting documentation should be attached to the letter.
What are some tips for writing a good cover letter?
Here are some tips for writing a good cover letter:
- Be concise and to the point
- Use bullet points to highlight important information
- Proofread for errors and typos
- Include all relevant information, but don’t include unnecessary details
- Make sure the tone is professional and respectful
- Use proper grammar and punctuation
Conclusion
The originating lender submission cover letter is an important part of the VHDA mortgage loan application process. It provides the underwriter with additional information about the borrower and the loan, which can help expedite the loan approval process. By following the tips outlined in this article, you can ensure that your cover letter is professional, organized, and effective.