Some new guidelines for our Vets starting February 15th with their home refinancing and cash out allowances!
VA has adopted new cash-out rules for refinances. These changes are effective February 15, leaving a very short period for lender comments, as well as meeting new disclosure requirements. Refinances other than IRRRL’s are divided into two types. TYPE I cash-outs are actually rate and term refinances. TYPE II are true cash-out refinances. In either case, the funding fee cannot be financed over 100%, which is the maximum LTV. A 210-day seasoning requirement is in place and there must be a net tangible benefit met. The VA gives eight options to meet this standard. In addition, fees must be recaptured within 36 months for Type 1 cash out refinances. See VA Circular 26-18-30 for more information.
There’s allot of banking jargon in that first paragraph but it essentially says that going forward the VA is tightening their belt with how they will loan their monies and how they expect to have guidlines followed to have it paid back. ABBA First will continue to follow all the rules and regulations as put forth by the VA as we continue to serve our military with honor and respect while we offer them the best service that we can through mortgage and loan originations and low interest rates. Call 910-332-0650 to find out how we can make a difference in your life if you’ve served our country and are looking to finance a home mortgage today!