Some people don’t know that you can’t refinance your VA loan without waiting 210 days after your last loan. Some people do know this guideline. However, there are some specifics that people are not aware of.
One very important nuance is that you have to wait 210 days from the date that the first payment was due on the prior loan. The 210 day waiting period doesn’t start from the date of your prior closing date.
Below is an example:
A VA loan closed in January, and had a first payment due date of March 1st, a check is written March 8th, and that check clears March 12th.
Can they refi 210 days from January 1st, March 1st, March 8th, or March 12th, in order to meet the VA seasoning requirements?
The answer is they can refinance 210 days from March 1st, and they also have to have made 6 payments to close a new VA refinance.
Mortgage guidelines have the ability to change at any time, so always talk to a well-reviewed mortgage loan officer to make sure you understand the current guidelines and how they might apply to you.
What is a community property state?
In the U.S., nine states have tried to alleviate the pressure of divorce by passing community property laws.
In Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, community property laws require divorcing couples to split assets acquired during a marriage equally. Marital property includes earnings, all property bought with those earnings, and all debts accrued during the marriage.
When getting a mortgage in a Community Property State, a spouse might not be on the new mortgage but their credit report will still be pulled and their debts will be added to the debt-to-income ratios of the mortgage borrower. However, this only applies to FHA & VA mortgages taken in the above states, not on Conventional loans. Read the rest of this entry »
With a VA loan, the United States Department of Veterans Affairs requires that the closing costs on a VA refinance be recouped in 36 months or less. If the recoupment period is over 36 months the loan will be rejected.
In other words, the refinance closing costs divided by the monthly savings has to be 36 or less, signifying the number of months in the recoupment period.
For example, if the closing costs on a VA refinance are $3,000 and the monthly savings on the refinance are $400 a month, the recoupment period is 7.5 months because $3,000 divided by $400 a month in savings = 7.5 (well within 36 months). Read the rest of this entry »