Mortgage brokers continue to report that FHA mortgage and VA home loans are the hottest products in the home financing sectors of the U.S. The VA provides low mortgage rates for streamline programs to veterans who currently have a loan guaranteed by the U.S. Department of Veterans Affairs. In addition to the VA streamline refinancing, Mortgage Related News reports that and VA loan officers are originating the Interest Rate Reduction Loan at a high volume than previous years because this VA loan has no “seasoning” requirement.
In the mortgage industry, this type of seasoning refers to borrowers who recently completed a mortgage refinance transaction. In addition, these VA loans entail very little documentation and usually do not require an appraisal. In order to qualify, borrowers must have a VA home loan that is not delinquent. In a recent VA mortgage article, Tom Kelly highlights the opportunity that military veterans and their families have financing and refinancing with VA home mortgage loans. He points out that one of the simplest ways for homeowners who have a VA mortgage is with the VA streamline refinance.
VA mortgage lenders will assess that veteran borrowers meet basic program requirements including:
· The new monthly mortgage loan payment must be for less than the original loan.
· The VA mortgage rate must be for less than the original loan (unless refinancing from an adjustable interest rate).
· The term cannot exceed thirty years or ten years more than the original mortgage term (up to a max of 360 months).
After 50 years of offering loans only to vets who served active duty, the VA changed its rules in 1992. Men and women who have completed six years in the Army, Navy, Air Force, Marine Corps or Coast Guard Reserves, or the Army National Guard or Air National Guard, are eligible for VA home loans, including programs with zero down required. >Read the complete VA home loan article online.
