At Lendia we can do VA Streamline Refinancing IRRRL with no appraisal as long as you have a 600 FICO. More details no this can be found by reading up on Lendia’s VA Streamline Refinance IRRRL Guidelines and Credit Requirements

In order to qualify for a VA Streamline Refinance IRRRL the borrower must:

• Have a VA Loan
• Be current on your loan with no late mortgage payments in past 12 months (exceptions can be made but be sure to contact us with specific scenario)
• Realize a benefit from the Streamline IRRRL Refinance.
  • That is you must lower your rate and monthly payment – if you are going from a fixed rate to a fixed rate
  • You are going from an ARM (Adjustable Rate) to a fixed rate VA mortgage – our rate does not necessarily have to be lower since the benefit is payment  stability in this case
• Recoup the refinance costs within 60 months
• Your principal balance cannot increase except for allowable points and fees
• If your monthly principal, interest, taxes and insurance (PITI) payment is increased by 20% than your current payment (usually occurs when going from a VA ARM to a VA Fixed Rate or when you are doing an IRRRL refinance and decide to get a lower term loan like a 25 year fixed 20 year fixed or even a 15 year fixed)
  • Lendia will need to check income to make sure you can manage the higher payment
  • Veteran will have to sign a certification stating that they qualify for the new monthly payment which is 20% higher than the current payment.

Once you know what the costs are, it’s a matter of just doing the math. If you’re doing a rate-term refinance with the goal of lowering your payment, simply divide your cost to close the loan by the amount you’re going to save every month.

This will tell you the amount of time to stay in the house in order to break even on the deal. If you see yourself moving before you reach breakeven, refinancing may not be a great option.

As an example, if refinancing lowers your interest rate and saves you $50 per month on your payment, but it has $5,000 in closing costs, you would need to stay in the home 100 months – a little over eight years – to break even. If you were to move out before that point, refinancing isn’t right for you under the terms of that deal. It’s a matter of balancing the cost against both your plans for the refinance and your long-term goals.

Before you break out the slide rule, though, we can help you with this math problem. With Lendia, you can compare a customized mortgage solution with your current mortgage loan in order to quickly and easily see if refinancing makes sense for you. You can also speak with one of our Home Loan Experts at (949) 333-4636.

We also always encourage you to take the opportunity to speak with a financial advisor before making any big moves affecting your future monetary planning.

If you want more information, view our refinancing options.

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Before you can refinance, there’s sometimes a waiting period and lenders will say that your mortgage has to be “seasoned” for a certain amount of time. Seasoning simply refers to the age of your mortgage. Age requirements most often apply in cash-out transactions, but it may also apply in other areas, such as when you can have your equity recalculated based on a new appraisal.

In the following sections, we’ll go over how your options to refinance are impacted by how long you’ve had your current loan.

Cash-Out Timeframe

If you’re looking to take cash out, you have to be on the title of the property for at least six months if you have a conventional, jumbo or VA loan. If you have an FHA loan, the waiting period on a cash-out refi is one year.

On a rate/term refinance (taking no cash out of your equity), there’s no waiting period.

If you recently moved back into your former investment property, the FHA also requires you to prove you’ve lived there for at least a year. If you haven’t been back for at least a year, you can only do a rate/term refinance, and the maximum loan-to-value ratio (LTV) is 85%. In the case of a refinance, LTV is the ratio of the loan amount compared to the appraised value.

One thing to note is that if you inherited the property, there’s no waiting period necessary unless you had an FHA loan and rented the property out at any time since you inherited it.

Using a New Appraisal

If you’re looking to use a new appraisal to prove an increase in your equity that’s based on increased property value, there are special waiting periods involved depending on the type of loan you have.

If you have an FHA, a jumbo or a VA loan and you want a new appraisal to determine a value increase, you have to own the property a year before requesting the appraisal.

On agency loans from Fannie Mae or Freddie Mac, there is no specific timeframe you have to wait. The appraisal just has to be supported by changing market conditions and/or documented improvements made to the property.

Factoring in the Costs

Once you know what the costs are, it’s a matter of just doing the math. If you’re doing a rate-term refinance with the goal of lowering your payment, simply divide your cost to close the loan by the amount you’re going to save every month.

This will tell you the amount of time to stay in the house in order to break even on the deal. If you see yourself moving before you reach breakeven, refinancing may not be a great option.

As an example, if refinancing lowers your interest rate and saves you $50 per month on your payment, but it has $5,000 in closing costs, you would need to stay in the home 100 months – a little over eight years – to break even. If you were to move out before that point, refinancing isn’t right for you under the terms of that deal. It’s a matter of balancing the cost against both your plans for the refinance and your long-term goals.

Before you break out the slide rule, though, we can help you with this math problem. You can also speak with one of our Home Loan Experts at (949) 333-4636.

We also always encourage you to take the opportunity to speak with a financial advisor before making any big moves affecting your future monetary planning.

Conventional loans are the most common types of loans in the mortgage industry. They’re funded by private lenders and banks and then sold to government-sponsored entities Fannie Mae and Freddie Mac who in turn pool those loans together and securities them for sale on the secondary market in what is called Mortgage Backed Securities (MBS).

These loans have stricter credit and income requirements than FHA loans. You’ll need a higher credit score and a lower debt-to-income ratio to qualify for a conventional loan than you would with an FHA loan.

The VA Streamline Refinance IRRRL Funding Fee is always 0.5% of the loan amount and it can be rolled into the loan so you do not have to pay it out of pocket.

The following individuals are exempt from the 0.5% Funding Fee:

1. Veterans that are receiving compensation for service- connected VA disability
2. Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay
3. Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan)
4. Veterans still on active awaiting discharge and who were rated eligible to receive compensation as a result of a pre-discharge disability examination and rating will be considered as receiving compensation as of that date; and
5. Veterans entitled to receive VA compensation for service-connected disabilities, but who are not presently in receipt because they are on active duty.

Before you’re ready to refinance, there are several things you need to think about, including the following:

• Current Equity – Home equity is the amount of your home’s value that you own. The more equity you have to the amount being borrowed, the less risky your loan is and that translates to a potentially lower interest rate. All lenders follow the same guidelines for what percentage of equity you have in the home when pricing your loan rate. Anytime you have less than 20% equity in the home you’ll have to pay mortgage insurance since the level of risk is higher.
• Credit Score – Much like buying a home, you’ll need to consider your credit score when refinancing a mortgage. You’ll need a credit score of at least 620 (or 580 in the case of an FHA loan) in order to refi your home. High scores imply less risk in the lending world and that translates to lower interest rates.
• Length of Time in the Home– Not only do you need to wait a certain amount of time before you can take cash out if you just took over the title, but you also need to consider how long you want to stay in your home and whether refinancing will make sense. For example, do you really need to pay more for 15 years of rate certainty if you only plan on staying in the home for five years? An adjustable rate mortgage (ARM) is a loan with a 30-year term with a low teaser rate that stays fixed for a period of time – typically five, seven or 10 years – before it adjusts up or down, depending on what the market is doing. If you only plan on being in the home for 10 years, you would be able to get a lower rate with an ARM then you could with a fixed-rate mortgage and be ready to move before it ever adjusts. If you plan to own your home for two years or less, it’s likely not worth refinancing unless you refinance to a much lower rate.
• Other Outstanding Debt – A mortgage lender will have to take a look at your debt-to-income (DTI) ratio. The less income you have going toward debt, the better your chances will be to qualify. You can also look at taking equity out of your home for debt consolidation.
• Closing Costs – Closing costs on a refinance will typically be a bit cheaper than they are on a purchase, but they can still be significant. When talking to lenders about loan options, don’t overlook this. You may see lenders make reference to no-cost refinances. Know that there is no such thing. While you can often get a refinance with little to no closing costs, there’s a drawback. The lender will either charge a higher interest rate or roll the closing costs into the loan amount. For some people, it still makes sense to refinance this way and every situation is different. Just be aware that to get the lowest rates, you’ll typically have to pay higher closing costs. Be sure to speak with your Home Loan expert about all options.
• Mortgage Prepayment Penalties – Some lenders charge a penalty if you pay off your mortgage before a certain point in the term, say within five years of getting it. If you plan on refinancing, look at the terms of your current mortgage and see whether you’ll have to pay a penalty, because they should be factored into your decision as to whether a refinance makes financial sense.
• Loan Term – While there are exceptions if a financial change has made you want to drastically lower your payment, most people like to have a loan term that’s at least equal to the number of years they have remaining on their original mortgage if they can afford it. While many lenders only offer loans in set terms, Quicken Loans® is able to offer fixed-rate financing for conventional loans in terms anywhere between 8 – 30 years.

When you’re getting ready to refinance, the monthly payment shouldn’t be the only consideration. Make sure you’re also factoring in your goals, the loan’s term, your interest rate and closing cost. Not sure where to start? Our mortgage refinance checklist can help.

• You can make a down payment as low as 3%.
• If your down payment is at least 20%, you can avoid paying private mortgage insurance (PMI).
• In most counties, you can typically borrow more than you can with an FHA loan.
• Mortgage rates are typically lower for conventional loans than FHA loans.

A veteran’s eligibility can be earned by serving in the Army, Navy, Air Force, Marine Corps, Coast Guard, Reserves or National guard and was discharged under conditions other than dishonorable.

You may be eligible for a VA Home Loan if you meet one or more of the following conditions:

• Active Duty Personnel
  • Served 90 Days during war time
  • Served 181 continuous days during peace time
• Selected Reserves & National Guard
  • Completed 6 years as Member of Active Unit
  • Honorable Discharged and Retired
  • Service Connected Disability
• Un-Remarried Spouse Who died while in Service
• Spouse of Service Person MIA or POW
• Discharged for Service Connected Disability
• Reduction in Force after 20 months of 2 year enlistment

There are numerous exceptions to the length of service requirements. To find out if you are eligible for a VA loan, call 949-333-4636 to speak with one of Lendia’s VA Loan specialists who can help you with your specific needs, or contact us here to get a VA loan rate quote and verify your eligibility.

The fastest way to find out if you are eligible for a VA Loan is to contact a mortgage consultant at Lendia by calling 949-333-4636. We can obtain a Certificate of Eligibility (COE) for you in a matter of minutes and discuss your loan options as well.

Another way to obtain your certificate of eligibility is to complete VA Form 26-1880 and mail it directly to the VA.

**To start the loan process with Lendia you do NOT need your Certificate of Eligibility in hand.