va Home Appraisal Requirements

Existing VA Home Loans Take Advantage of Lower Rates

Existing VA Home Loans Take Advantage of Lower Rates

Many people are aware that the Veteran’s Administration (VA) offers attractive financing terms for our veterans. However, many veterans do not know that they can take advantage of lower mortgage rates with relative ease.

The VA offers a program called the IRRRL or the Interest Rate Reduction Refinance Loan. Any veteran that currently has a VA mortgage can refinance without a new appraisal or meeting the standard refinance guidelines. The credit report used for this process is a mortgage only credit report that shows the mortgage payment history and credit scores. 

The goal of this program is to show a clear benefit for the homeowner after the refinance is complete. In order to prove a benefit the rate must be lower, or the loan term is shortened, or the veteran is converting from an adjustable rate loan to a fixed rate loan.

Other highlights of the IRRL:

• No requirement to provide proof of income
• Usually no expense paid at closing – all closing costs are allowed to be rolled into the loan.
• At the time of the refinance the borrower must be current on their mortgage and show no more than one 30 day late payment on their mortgage within the previous 12 months.
• Borrower cannot receive cash at closing.

This is really a wonderful benefit. For example, on a $225,000 mortgage, a reduction in interest rate by just 2% can mean a payment that is $250 lower!

Any veteran that has an existing VA loan should at least talk to their lender to find out how today’s rates compare to their existing rate. It could mean a substantial benefit to them with a very easy approval process.

Your local Wisconsin, Illinois, Minnesota and Florida mortgage banker:

Brian Collins
Toll Free: 877-240-5810 x106
brian.collins@madisonmortgageguys.com
www.madisonmortgageguys.com
 
Visit my blog at http://www.madisonmortgageguys.com/blogs_brian_collins/

On our blog:

http://www.madisonmortgageguys.com/blogs_brian_collins/content/wisconsin-va-refinance-information-va-to-va-streamline-refinance-irrrl/

http://www.madisonmortgageguys.com/blogs_kelly_rydzik/content/existing-va-home-loans-take-advantage-of-lower-rates/
 

About the Author

Your local Wisconsin, Illinois, Minnesota and Florida mortgage banker offers first time home buyer, fha, fha refinance, fha 203k, va, va refinance, interest only, conforming, refinance, cash out, jumbo, no money down, reverse mortgages, interest only and usda rural housing loans.

Visit us online at www.MadisonMortgageguys.com

Toll Free: 877-240-5810

Anyone familiar with VA home loans?

I am a seller & have someone wanting to buy my house. They are going thru the VA for financing. I understand their rules are a little different from conventional loans. I really want to see this couple get my house but I can find very little info on requirements & such. Has anyone had any experience with this type of loan. Particularly the inspection & appraisal requirements.
Thanks

Its pretty straightforward.

The appraisal and inspection will be a little more consrrvative than normal. The VA want to make sure the property is immediately habitable and will check a dozen or so “health and safety” issues to make sure (mostly common sense).

The biggest issue for most is that you will have to cover about $1200-$1500 of their closing costs, so make sure you take that into consideration when you review their offer.

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In a perfect world, you have to have willing buyer and a willing seller. Neither is under duress. va home appraisal requirements Both are in a position to maximize gain and are trying to do this. But in the real world, things are rarely that simple and equally balanced. va home appraisal requirements Which is why people feel differently about the appraisal value of a house.