VA Refinancing Guidelines And Requirements On VA Home Loans
In this blog, we will be covering the VA refinancing guidelines and requirements for VA loans. VA loans are limited to only Veterans who have gotten an honorable discharge from a branch of the United States Armed Services and have a valid VA Certificate Of Eligibility. VA loans offer 100% financing. A veteran with a Certificate of Eligibility can purchase with no money out of pocket. No down payment on a home purchase is required.
What Are Closing Costs on Home Purchases?
All closing costs on a home purchase can be covered by a seller’s concession by the home seller. Up to 4% of the purchase price can be offered by the home seller to the home buyer as seller 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-paid), and any other charges and fees associated with the purchase of the home by the veteran
If the veteran home buyer cannot get a seller concession from the home seller, the home buyer can get a lender credit from their lender to cover part, most, or all of their closing costs in lieu of a higher mortgage interest rate on their VA loan. In this article, we will cover VA refinancing guidelines and requirements for VA loans.
Loan Limits on VA Loans
VA loans used to have a maximum loan limit cap of $647,200 in most areas. However, VA just changed its VA guidelines and there is no longer a maximum loan limit on VA loans. In many parts of the country like many counties in California, VA loans can exceed over $1,000,000 if the property is located in high-cost areas.
FHA loan limits are capped at $420,680 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 high-cost area and FHA loan limits are capped at $970,680 in high-cost areas. Fannie Mae and Freddie Mac, the two mortgage giants that set Conventional mortgage regulations have capped conforming loan limits at $647,200 unless the property is located in a high-cost area
VA Refinancing Guidelines on IRRRL
VA refinancing guidelines allow for VA streamline refinance mortgages where the homeowners do 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 credit scores and you can still qualify for a VA Streamline Refinance mortgage loan.
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 guidelines. If you do a VA rate and term refinance mortgage, you need to provide the lender the 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, or appraisal and normally can close in three weeks or less. VA Streamline Refinances are rate and term refinances only.
Best VA Mortgage Loans With No Overlays
If you are looking for a mortgage broker licensed in 48 states with no lender overlays, contact us at Non-QM Mortgage Lenders Whether it is a cash-out VA refinance mortgage loan or a streamline refinance mortgage, please contact us at Non-QM Mortgage Lenders at 800-900-8569 or text us for faster response. 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.
