Home Mortgage Refinancing for Veterans

Now considered as one of the best and most streamlined programs for home mortgage refinancing, the US Department of Veterans Affair now offers easy refinancing for their consumers. Known as the Interest Rate Reduction Loan, this program has very limited restrictions, and even has no season requirement. This means that applicants who refinanced then are still eligible for application. Moreover, the loans require a very limited set of documentation and a lot of times would not even require appraisal.

Here are important information you have to know about the VA streamline:

• For a borrower to qualify, they have to have a VA loan.
• The interest rate would then differ according to the type of loan and the term of the loan, which should not be more than 360 months.
• The payments should also be mad every month.
• Not more than two points can be rolled into this loan, as well as the closing costs allowed.
• Around 0.5 percent worth of funding fee is normally collected before closing. This can be financed into the loan as well.
• Exemption for the funding fee can be applied after disability to pay is established and verified.

Below are important requirements borrowers must take note of:

• The new payment should be less then the previous loan.
• The interest rate should be less than that of the previous loan.
• The term of the loan should not be more than 360 months.
• The Department of Veterans Affairs guarantees the loans.
• The loans can be used to purchase a property, such as a single family home, a townhouse, a condominium unit in a VA-approved property, or to build a new one. The loan can also be used to refinance a home mortgage.
• The VA loan requires borrowers to move into the approved house or property within a reasonable amount of time. This property should be the primary residence of the borrower.

This program originated in 1944 under the administration of then President Franklin D. Roosevelt, when the Servicemen’s Readjustment Act was signed into law. This permitted veterans to buy homes and properties without having to pay for down payment. The fixed-rate version of the loan also gives borrowers to get a home mortgage refinance plan.

The VA loan currently gives borrowers underestimated but highly attractive options for home mortgage refinancing and loans for new house purchases. It is best for you to conduct your own research until you get all the information you need for you to start applying.

This entry was posted on Wednesday, June 24th, 2009 at 9:49 am and is filed under Home Mortgage Financing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.