VA Refinancing Guidelines Explained

What Are The 2016 VA Refinancing Guidelines

VA Loans are limited to only for Veterans who have gotten an honorable discharge from a branch of the United States Armed Services and has a valid VA Certificate Of Eligibility . VA Loans offer 100% financing and a veteran with a Certificate Of Eligibility can purchase with no money out of pocket where no down payment on a home purchase is required and closing costs on a home purchase can be covered by a sellers concession by the home buyer. Up to 4% of the purchase price can be offered by the home seller to the home buyer as sellers concessions for the VA home buyer for the home buyer to use it for closing costs. Example of closing costs includes title charges, recording fees, appraisal fees, transfer stamps, origination fees, points, attorney’s fees, homeowners insurance, escrows ( pre-paids), and any other charges and fees associated with the purchase of the home by the veteran. If the veteran home buyer cannot get a sellers concession by the home seller, the home buyer can get a lender credit by their mortgage lender to cover part, most, or all of their closing costs in lieu of a higher mortgage interest rate on their VA Loan.

Loan Limits On VA Loans

VA Loans have loan limit caps at $417,000 in most areas. However, in many parts of the country like many counties in California, VA Loan limits can exceed over $1,000,000 if the property is located in high cost areas. FHA loan limits are capped at $271,500 in most areas unless the area the property is located in is deemed a high cost area. Most counties in the state of California is classified as a high cost area and FHA loan limits are capped at $625,500 on high cost areas. Fannie Mae and Freddie Mac, the two mortgage giants that set Conventional mortgage regulations have capped conforming loan limits at $417,000 unless the property is located in a high cost area.

2016 VA Refinancing Guidelines

2016 VA Refinancing Guidelines allow for VA Streamline Refinance mortgage where the homeowners does not need a new appraisal, no employment verification, and no credit scores. As long as you have been timely on all of your VA monthly mortgage payments for the past 12 months, you can qualify for a VA Refinance Mortgage, also known as IRRRL and your credit scores, income, or value of your home has no impact on your eligibility for a VA mortgage loan. Your credit scores can be under 500 FICO credit scores and you can still qualify for a VA Streamline Refinance mortgage loan.

2016 VA Refinance Guidelines On Cash-Out Refinance Mortgages

The Department Of Veteran Affairs is the entity that governs the VA mortgage regulations on VA Loans and sets up VA mortgage lending guidelines. If you do a VA rate and term refinance mortgage, you need to provide the VA Lender your income docs, credit needs to be pulled, and an appraisal will be required. Cash Out VA Refinance mortgages require all income documents, credit, and appraisal. However, VA Streamline Refinance mortgages do not require income, credit, nor appraisal and normally can close in three weeks or less. VA Streamline Refinances are rate and term refinance only.

If you are looking for a VA refinance mortgage lender, whether it is a cash out VA refinance mortgage loan or a VA Streamline refinance mortgage, please contact us at 262-716-8151 or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays to take your calls and answer any questions that you may have.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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