| p>Today's mortgage lending environment is becoming | | | | · Verification of the past 12 months of |
| more and more difficult for borrower to get approved | | | | mortgage payments, and minimum credit scores may |
| for mortgage refinance traction. Since the housing | | | | be required |
| market began to turn lenders have started to tighten | | | | · 1 or 2 skipped mortgage payments |
| up their underwriting standards making it harder for | | | | · Up-to 2 discount points may be rolled into the |
| borrower to get approved. Fortunately, for veteran | | | | loan |
| borrowers they have two very flexible transaction | | | | Cash out or rate and term VA refinance |
| options to ease the approval process through their | | | | The 2nd option is what is considered a full VA |
| own VA home loan program. | | | | refinance transaction with an appraisal, and all of the |
| VA Interest Rate Reduction Loan (IRRL) | | | | other normal documentation i.e. paystubs, W2s, ect. |
| The 1st option is something called a VA Interest Rate | | | | The nice thing about this loan is that it allows borrower |
| Reduction Loan (IRRL). This is a loan where the | | | | to refinance all the way up to the current value of the |
| veteran borrower already has a VA home loan and | | | | veterans home. That's right 100% financing on |
| would like to refinance down to a lower interest rate | | | | refinance transaction for not only borrowers who are |
| given the current market interest rates. The amazing | | | | looking for rate and term refinancing coming out off an |
| benefit of this loan is that it's incredibility easy to get | | | | ARM or another conventional loan but also for cash |
| approved. There are no appraisals required so value is | | | | out refinance transactions as well. So veterans that |
| not of a concern. There are no minimum credit scores; | | | | want to consolidate debt, do home improvement |
| however, some investors and large banks have | | | | projects, or for other various reason are allow. In |
| started requiring minimum credit scores recently. | | | | addition, to this the VA loan will allow VA jumbo loan |
| The paperwork needed to process these loans is | | | | refinance transactions that are over $417,000 or some |
| minimal at best. There are no paystubs, W2s, or bank | | | | in high cost areas. But another word of warning the |
| statements required. One thing to watch at for is with | | | | guidelines for VA jumbo refinance transactions can |
| such easy credit standards veterans become very | | | | get very complicate so please make sure your loan |
| susceptible to unscrupulous lenders that are more than | | | | officer is very familiar with VA loan or you could really |
| willing to take advantage of borrower. The majority of | | | | get yourself into some problems. |
| my previous clients are receiving unprecedented | | | | Summary of VA Cash out Refinance |
| amount mailers that make it seem that VA rates are | | | | · Cash out refinances up to 100% of the value |
| lower than that actually are. So please watch out for | | | | of the home established by a VA appraisal |
| your closing costs when proceeding with caution with | | | | · Refinance out of ARMs or other mortgage |
| such a transaction. | | | | like conventional & FHA loans |
| Summary of the VA IRRL | | | | · VA jumbo refinance loans are available but |
| · VA to VA loan rate and term rate reduction | | | | proceed with caution |
| · Appraisal, income docs, or asset docs are | | | | · No monthly mortgage insurance unlike most |
| not required | | | | mortgages without 20% equity. |