Home Purchase - Home Refinance
For Properties in MN WI IA ND SD CO FL
Unlike most other mortgage loans, the VA program does have a a minimum waiting period and set of guidelines for refinancing an existing VA mortgage loan into another VA mortgage loan.
The primary reason for the following guidelines is to ensure their is a benefit to the veteran in refinancing, and to prevent bad VA lenders for churning loans, and taking advantage of people.
Your new VA loan must meet meet BOTH of the following in order to refinance a current VA loan into a new VA loan:
The three different type of VA refinance loan come with some different rules. See Unintended Consequences below:
All VA cash out refinancing loans must pass the NTB test. You are considered to have passed if your new VA loans meets at least one of the following items:
(Note: If the loan being refinanced had an adjustable interest rate or was modified, the current interest rate must be used when determining if this requirement has been met.); or
Your new VA refinance loan must also meet the time to recoup closing cost guidelines, which is that:
The number of months to recoup closing costs, and allowable fees can NOT exceed 36 months.
Note that pre-paid expenses (tax and insurance escrows), and any VA funding fee (if applicable) are not included in the cost calculation.
IF the veterans payment INCREASES due to a decreased loan term (like moving down to a 15-yr or 20-yr loan), or the conversion of an adjustable rate loan (ARM), the veteran can NOT incur ANY fees, or closing costs costs (other than pre-paid expenses of taxes and insurance) and the funding fee.
While well intentioned, unfortunately there are some unintended consequences of these rules that frustrate veterans.
A prime example is the paragraph above about the lender not being able to charge closing costs if you are reducing your term. Sounds good to the veteran, but there ARE closing costs on all loans, and they must be paid. So the only way for the lender to allow you to refinance AND meet the guidelines is to convert the normal closing costs (making them zero) into a higher interest rate for your new loan.
Once your Cambria Mortgage Loan Officer has your full VA LOAN APPLICATION, they will happily go over all guidelines that apply to you. Free free to call our VA loan experts with questions at (651) 552-3681
Top rated nationally and locally year after year. Because clients agree - expert Loan Officers, interest rates you can brag about and amazing service sets us apart from the big banks and internet lenders.
33 Wentworth Ave E, St Paul, MN 55118
(651) 552-3681
Loans@VAMortgageMN.com
Cambria Mortgage, Inc | NMLS #322798
Branch Manager: Joe Metzler, NMLS #274132
Branch NMLS #1888858
We are not acting on behalf of, or under the direction of the VA or the Federal Government. The Veterans Administration does not lend directly to the public, only through approved lending institutions like us here at Cambria Mortgage.
The Department of Veteran Affairs requires mortgage companies who offer VA Loans go through a stringent approval process. We are proud tp a VA approved mortgage lender and are proud to help military families use their VA Loan Benefits.
Equal Housing Lender, Cambria Mortgage NMLS# 322798. Our lending services provided only in the following states: Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Colorado, and Florida. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. The information here may not be up-to-date and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. © 1998 - 2023, Joe Metzler, NMLS 274132
Rates listed here are national averages. Your actual interest rate may vary based on your personal situation, loan type, credit scores, and closing cost choices. Lower rates available by paying discount points (higher closing costs). Lower closing costs available by taking a higher interest rate. Rates below reflect PURCHASE loan interest rates, refinance rates tend to run higher.
NOTICE: You will be leaving this VA Mortgage website, and will be taken to the Cambria Mortgage MY ACCOUNT page. You must already have a login and password to view your account, upload documents, etc.