Refinancing a VA Loan

sameboatFebruary 20, 2009

I have a question that I cannot find the answer to anywhere. In Oct. 08 we purchased our home with a VA loan. The rate was relatively high (6.5%) as the rates were all over the place on a daily basis and we had to lock in. Now the rates are way low and we would like to refinance, but DH thinks we have to wait until we've owned our home for 12 months. Would it be wise to wait until Oct., and is that the case? I can't find that info anywhere. The value of our home is 20% more than our mortgage. Thank you for any advice.

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sameboat

OK here's what I found," VA does not require an appraisal, any income or employment verifications, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing."

Does this mean that we need to have paid for 12 months previously, or that there couldn't be any late payments for the past 12 months. I know it may seem obvious to you all, but it's not put in a very direct way for me to "get it". We are up to date with payments and have not had any late payments since we purchased in October, but we haven't owned the home for 12 months.

Anybody?

    Bookmark   February 20, 2009 at 10:19AM
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pamghatten

Sorry, but I first have to comment about 6.50% being high ... LOL ... when I first started in mortgages in the early 80's rates were 13.50%, so 6.50% will never seem like a high rate to me.

But back to your question ... I find nothing to indicate that you need to have owned your home for 12 months to do a VA IRRRL. And for you, paid as agreed for 12 months would mean that your payments since October have been on time. But, our guides don't say that you need to have been on time for 12 months, the VA will even look at loans that are currently past due.

So you should be OK. Call and talk to a Lender to ensure THEIR specific guidelines are the same.

    Bookmark   February 20, 2009 at 10:50AM
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sameboat

Thank you for your response! LOL I know 6.5 doesn't seem like a high rate - our first mortgage rate 18 years ago was 10% and we were ecstatic to refinance to 7.5%. But a percentage point would make a big difference to us now. I'd hate to miss out. Will check with my lender.

    Bookmark   February 20, 2009 at 11:15AM
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