Kentucky VA Mortgage Refinance

Kentucky VA Mortgage Refinance Guidelines

100% of the home's value No Income or Asset verification is required for a VA Refinance No Appraisal is required  No Credit Qualifying VA Funding Fee is .50% Can refinance an investment property as long as you can document it was formerly the borrower’s primary residence At least 6 monthly payments must have been made on the original loan being refinanced; AND The first payment due date of the new loan must be at least 210 days after the first payment due date of the original loan being refinanced A copy of the Note from the previous loan being refinanced must be provided An IRRRL refinancing a Fixed Rate Mortgage into another Fixed Rate Mortgage must result in a rate IRRL is also know as Interest Rate Reduction Loan in VA terms. reduction of at least 0.5% An IRRRL refinancing a Fixed Rate Mortgage into an Adjustable Rate Mortgage must result in a rate  reduction of at least 2.0% IRRRLs in which a Discount is being charged to the borrower will now require an Exterior-Only Appraisal to be ordered If the Discount being charged is 1% or less, the loan will be limited to 100% LTV based on the value of the Exterior-Only Appraisal If the Discount being charged is more than 1%, the loan will be limited to 90% LTV based on the value of the Exterior-Only Appraisal Loan must current be guaranteed by VA and must be current Closing costs must be recouped within 36 months Proposed P&I payment must be less than current payment unless: Veteran refinancing ARM to Fixed Term of IRRRL is shorter than existing loan as long as payment does not increase over 20% Energy efficiency improvements are included in the IRRRL VA Guaranteed by the Veterans Administration for qualified military veterans. No down payment if the property appraises for the sale price or greater. Credit underwriting is flexible. No Minimum credit score for VA loans, but lenders will create overlays to protect their selling ability to VA for delinquent mortgage loans sold to VA. A lot of VA lenders want a 620 credit score, with some going down to 580, and a few will do down below that but very difficult to get approved with a VA lender. No monthly mortgage insurance payments are required, however they're upfront funding fees that range anywhere from 2.1% to 3.3% based on previous use or first time use of VA eligibility to buy a home, or if you are disabled, you may have not to pay this at all. The VA Certificate of Eligibility will show if you have to pay a funding fee to VA or if you are exempt.

VA Refinance: Interest Rate Reduction Refinance Loan

President Lincoln famously said: “Honor to the soldier and sailor everywhere, who bravely bears his country’s cause. Honor, also, to the citizen who cares for his brother in the field and serves, as he best can, the same cause.”

We can never fully repay our Veterans, however, one of the ways our country tries to show its appreciation is through VA loans. These loans are a specialized class of home loans backed by the Department of Veterans Affairs. Qualified Veterans have access to features that include eliminating mortgage insurance requirements, debt-to-income ratios similar to FHA Loans and reduced or no down payment options. 

 

Can You Refinance a VA Loan?

Yes, VA-backed loan products are available for refinancing. These loans can offer quicker turnarounds because they are not dependent on the open appraisal market. They are also ordered through the VA which may save time compared to a standard loan.

Let’s take a closer look at a few ways that we are helping many Veterans save money on their monthly payments or putting their mortgage to work by providing them access to cash.

 

What is a VA IRRRL (Interest Rate Reduction Refinance Loan)?

The VA IRRRL is a mortgage refinance option for qualified VA borrowers that have an existing VA loan. The IRRRL allows Veterans to refinance to a new VA loan with a lower interest rate or convert a VA loan from an adjustable to a fixed rate.

It's also known as a “VA Streamline” because there’s often less paperwork involved resulting in quicker turnaround times.

 

• VA Streamline Refinance (IRRRL) Requirements

The IRRL is not available to Veterans with non-VA loans. However, if you have a VA loan and can certify that you live in the home you may be eligible for a VA IRRRL.

Lenders may also have guidelines and requirements regarding how long you've had your current mortgage.

• Specific guidelines and policies on credit scores, appraisals, loan-to-value ratio, and loan payment history can vary by lender. Additionally, part of the application process involves verifying how many payments have already been made as well as timeframes on recovering the costs and fees associated with the new loan.

• VA Streamline Refinance (IRRRL) Benefits

There are several advantages to doing an IRRRL aka VA Streamline Refinance. These include little to no out-of-pocket costs and in most cases no VA appraisal. The VA funding fee is lower on IRRRLs than for typical VA purchase and cash-out loans, and some Veterans choose to exercise their option to avoid out-of-pocket costs by rolling the closing costs and fees into the loan balance.

Unlike VA home purchase loans where you need to intend to occupy the property as your primary residence, that is not the case with a VA Streamline Refinance.

 

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What is a VA Cash-Out Refinance?

The VA Cash-Out refinance loan replaces your existing mortgage. It gives qualified veterans the opportunity to refinance their conventional or VA loan at a lower rate while turning the equity in your home into cash. Equity is the difference between what you owe on your mortgage and your home's current value.

A VA cash-out refinance encompasses both a VA Rate and Term Refi as well as a Cash-out Refi.

 

• VA Cash-Out Requirements

As with a standard VA loan, borrowers must meet credit, income, and appraisal guidelines. Minimum credit scores are also required though vary based on the lender, the loan amount, and other factors. Additionally, you must certify that you intend to occupy the property being refinanced.

Homeowners can finance their closing costs or VA Funding Fee provided they meet lender loan-to-value guidelines

• Benefits of a VA Cash-Out Refinance

Many Veterans use the extra cash for eliminating debt, making home improvements, paying for college, or even investing. Homeowners often choose the VA cash-out refinance option because it offers the ability to repay the loan over a longer period.

Kentucky VA Streamline Refinances

Kentucky VA Streamline Refinances

NO Appraisal Required!

Lower your Rate and Monthly Payment Minimum Middle Credit Score: 580 NO late mortgage payments in the last 12 months Maximum Loan Amount: $484,350.00 Available Loan Terms: Fixed 15, 20, 25 and 30 Years NO Loan to Value, as NO Appraisal is required Primary Residence Only NO Qualifying Ratios Must be refinancing an existing VA loan Call for full details...

Eligibility

Regular Military (Active or Veteran) Reserves and National Guard Meet Tangible Net Benefit Rules Call us to obtain your COE VA Funding Fee .50%, unless exempt