va loan

Niicss · Posted: Wed May 23, 2007 12:42 pm Post subject:

Hi Nancy,

Interest Rate Reduction Refinancing Loan (IRRRL) is only allowed if it results in lowering of interest rate for your existing VA loan. Exception to interest rate reduction criteria is allowed only when you are refinancing your VA loan which is a ARM into a FRM. In that situation IRRRL is permitted even if it does not result in reduction in interest rate.

For this loan VA does not require appraisal or credit underwriting on its part but a lender can ask for it if he wishes to. Additionally a certificate of eligibility will also not be required and the lender can use VA's e-mail confirmation procedure in lieu of certificate of eligibility.

The other advantage of this refinance is that the cost of refinance can be included into the new loan or interest rate be increased so that lender can pay for the involved costs.

Niicss

Guest 0.10 Dollars($)

is it necessary for it to be a va to va refinance?

and what are the occupancy requirements for this interest rate reduction refinancing loan

leanne

blue · Posted: Wed May 23, 2007 12:55 pm Post subject:

Hi Leanne,

Welcome to Mortgagefit discussion board.

Yes for IRRRL it must be a VA to VA refinance. Other thing is that it cannot be cash out refinance, i.e., you cannot receive cash from the loan proceeds.

Regarding the occupancy requirements, at the time you got the VA loan, you had to certify that you are occupying or intend to occupy the house. But for Interest Rate Reduction Refinancing Loan, you will only have to certify that you previously occupied the house.

Do let me know if you have any other questions.

Thanks
Blue

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is home loan benefit is available for surviving spouse of any deceased veteran?

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

Hi Kenneth,

If the veteran died because of any service connected disability or on active duty then his unmarried surviving spouse would be eligible for the home loan.

A surviving spouse wishing to apply for the home loan has to contact the Winston-Salem Eligibility Center. Let me also tell you that if surviving spouse has obtained VA loan along with the veteran before his death (irrespective of the cause of the death) then the spouse can get an interest rate reduction refinance loan guaranteed by VA.

Guest 0.10 Dollars($)

what if surviving spouse remarries, will the spouse be eligible to apply for the loan?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

If the surviving spouse remarried on or after the age of 57 and on or after December 16, 2003 would be eligible to apply for the loan.

But if the spouse remarries before December 16, 2003 & on or after the age of 57 needs to apply for the loan before December 15, 2004.

Miller

Guest 0.10 Dollars($)

in case my previous va loan was assumed by someone but that person defaults and va pay a claim to the lender and the debt is waived as it was not my fault. now if I need a another va loan would my used eligibility be restored?

colin · Posted: Tue May 29, 2007 1:21 pm Post subject:

Guest 0.10 Dollars($)

my previous va loan has not yet been paid in full and I do not own the property now and because the previous loan has not been paid yet only a portion of my eligibility is available. in such state can I obtain a va loan now, thanks for the replies

Niicss · Posted: Wed May 30, 2007 11:52 am Post subject:

Hi Jancke,

As you have already used some portion of your eligibility & the used portion has not yet been restored, the partial remaining amount of eligibility will be available to you for use.

You need to discuss with your lender if the left balance will be sufficient for the loan value you want to take & whether making a down payment will be necessary.

Niicss

Guest 0.10 Dollars($)

I am not sure why it is so but came to know that even though I had paid the va funding fee at the time of my first loan, there would be a larger fee if I take a second loan

blue · Posted: Wed May 30, 2007 12:10 pm Post subject:

Hi Bierman,

Welcome to Mortgagefit discussion board.

The VA funding fee is taken from veterans obtaining VA home loans as a way of contribution towards expenditure of this home loan benefit & to reduce the cost to taxpayers.

It is true that this fee for veterans taking the loan for the second time without making a down payment is relatively higher. The basic idea based on which a higher rate is charged is that veterans had already used this benefit earlier & they had time to accumulate equity or save some money for making a down payment to take a loan the second time.

Those veterans who at the time of taking the loan for second time make a down payment of at least 5% need only pay a reduced VA funding fee of 1.5%. This is the same as what any first time borrower has to pay who also make the same amount of down payment. And if the down payment amounts to 10%, the funding fee drops to 1.25%. Paying for the fee can have less impact on your financial situation as this fee amount can also be financed in the loan.

Do let me know if you have any other questions.

Thanks
Blue

Guest 0.10 Dollars($)

One thing Bierman you should know is that national guard & reservist veterans are required to pay a slightly higher va funding fee percentage in comparison to other veterans.

Guest 0.10 Dollars($)

what type of grants va provides for veterans with service related disabilities for constructing adapted house

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