MRP National Exam cheat sheet

VA loans are guaranteed, not made, by the federal government: the VA backs a portion of the lender's loss, and the lender underwrites and funds the loan.

Eligibility categories include veterans with sufficient active-duty service, current Guard/Reserve members with qualifying service, surviving spouses (remarried surviving spouses generally lose eligibility), and some National Guard/Reserve veterans.

The VA funding fee is a percentage of the loan amount paid to VA; it varies by down payment size, first vs. subsequent use, and whether the borrower is a veteran or a surviving spouse.

Veterans receiving VA disability compensation, and certain surviving spouses, are exempt from the funding fee and must document the exemption.

Occupancy rule: the veteran must certify intent to occupy the home as a primary residence within a reasonable time after closing (generally within 60 days).

VA does not set a maximum loan amount, but lenders must calculate entitlement and any down payment required above the county conforming loan limit for full-entitlement borrowers.

Common property standards come from VA MPRs (Minimum Property Requirements): safe, sound, and sanitary; the VA appraisal (Notice of Value) addresses value and property condition.

VA loans typically require no monthly mortgage insurance premium, but lenders may impose their own overlays such as minimum credit scores or debt-to-income caps.

Key vocabulary: COE (Certificate of Eligibility), entitlement (basic and bonus/second-tier), Notice of Value, funding fee, and IRRRL (Interest Rate Reduction Refinance Loan).

PCS orders are the legal basis for military relocation; orders may arrive with short notice, so timelines are often compressed to 30-60 days.

SCRA (Servicemembers Civil Relief Act) protections include the ability to terminate a residential lease with proper written notice plus a copy of orders when receiving PCS or deployment orders.

SCRA also allows lease termination on deployment of 90 days or more, and protects against default judgment and foreclosure during certain active-duty periods (foreclosure protections generally require court order).

Buyers often use VA loans, which permit 0% down and allow sellers to pay concessions up to 4% of the sales price for closing costs and prepaid items.

Sellers relocating under PCS may need to sell quickly; agents should clarify whether the seller has a relocation company, buyout, or employer-assisted program that changes the process.

Military pay is documented differently: LES (Leave and Earnings Statement) shows current pay and allowances, while W-2s and orders supplement income verification; allowances such as BAH/BAS may be non-taxable.

Deployment and remote closings require planning: powers of attorney (often specific and durable) and remote online notarization may be needed; confirm lender acceptance of POA documents.

Cultural competence matters: rank, duty station tempo, and family separation affect decisions; avoid assumptions and ask about command schedules and communication preferences.

Process sequence: preapproval (COE + income/credit) → property search → ratified contract → VA appraisal/Notice of Value → underwriting → closing/disbursement.

COE can be obtained through VA's online portal (eBenefits/VA.gov), by mail, or through an approved lender using VA systems; it documents entitlement and service history.

Basic entitlement is $36,000 for most veterans; full entitlement allows 0% down up to the conforming loan limit in the county where the property is located.

Bonus (second-tier) entitlement can be used when basic entitlement is tied up in an existing VA loan; combined entitlement may allow purchase above the conforming limit with a down payment.

Entitlement restoration occurs when a prior VA loan is paid in full and the property is disposed of; one-time restoration is also available for borrowers who still own a VA-financed home but are moving to a new primary residence.

VA appraisal is assigned by VA (or an approved appraiser) and results in a Notice of Value; if the price exceeds the value, the veteran may renegotiate, pay the difference in cash, or withdraw.

The VA funding fee can be financed into the loan; first-use veterans with 0% down typically pay a higher percentage than subsequent users or those making a down payment.

VA loans allow sellers to pay up to 4% in concessions; borrowers may also use gifts, and VA permits certain closing costs to be paid by the seller or lender.

IRRRL (streamline refinance) generally requires a prior VA loan, a net tangible benefit (lower rate/payment or fixed from ARM), and no appraisal or full underwriting in many cases.

PCS (Permanent Change of Station) orders authorize relocation; service members typically have a reporting date and a defined shipment window for household goods.

DoD moving programs include government-arranged moves (HHG shipment through the Defense Personal Property System, DPS) and personally procured moves (PPM/DITY) where the member is reimbursed.

Temporary lodging and travel entitlements may include TLE (Temporary Lodging Expense) for CONUS moves and TLA (Temporary Lodging Allowance) for OCONUS, plus per diem and mileage for authorized travel.

Dislocation Allowance (DLA) is a lump-sum payment to offset relocation costs; eligibility and amount depend on rank and dependents.

BAH (Basic Allowance for Housing) is based on duty station ZIP code, pay grade, and dependent status; it changes with PCS and is a key affordability input.

School transitions are a major concern: military families may use the Interstate Compact on Educational Opportunity for Military Children (MIC3) for enrollment, placement, and graduation flexibility.

Relocation timelines often run 60-90 days from orders to report date; agents should build a calendar for house hunting, lease termination, and shipment dates.

Spouse employment and licensure portability matter: some states have laws easing license transfer for military spouses; agents can connect clients with installation family support centers (e.g., MWR, A&FRC).

Rental and lease strategy: SCRA lease termination requires written notice plus orders; tenants generally must pay rent through the termination effective date (often 30 days after notice).