If you got a VA mortgage on your house, it is possible that your interest rates have dropped since the mortgage was issued. The good news is that you can still qualify for an interest rate reduction refinance loan (IRR). If you got your house with a VA mortgage, you could qualify for an interest rate reduction refinance loan (IRR), if you want to obtain money from your house equity. This allows you to replace your existing VA mortgage with a va refinance brand new VA mortgage for a better rate and receive the difference at closing.
If your credit score is less than about 600, you probably will not qualify for a VA refinance loan. It is very unlikely that your lender will even consider your application for a VA refinance when your credit score is less than about 600. However, if you have not been paying your mortgage on time for three or more months, and you do not own more than two homes, and you do not have a bankruptcy or foreclosure on your public records, then you probably will be able to qualify. The lender will verify that you have not filed bankruptcy or had a foreclosure on your public records within the last five years, that you are currently not delinquent on your mortgage, and that your income does not exceed the vercellino (the per annum of what the federal minimum credit score requirement is for your state). Your vercellino is also going to be confirmed by the lender through the tax department. You can ask your lender if they can find the vercellino for you to ensure that you qualify.
You need to know that even if you get approved for a VA refinance loan, closing costs will still apply. Closing costs for a VA mortgage insurance refinance loan are considered to be mortgage insurance premiums, and are usually assessed against the principle loan amount. The principal loan can only be used for repairs and improvements, and interest on the principal loan is not deductible as deductible interest.
If you are in the process of changing residences, such as to move to a new primary residence, and you are still eligible for a VA refinance loan, then you can still refinance your primary residence by showing the loss in your primary residence as the deciding point for changing your mortgage. To do this, your lender must verify that the new address is a convenient location for you to live in a good manner consistent with your lifestyle. Your lender may require that you prove your new primary residence has certain factors that will contribute to you having a low unemployment rate, such as availability of public transportation, having access to good schools and health care, and other similar amenities. If these requirements are met, then you will be given the green light to proceed.
If you have had problems qualifying for either a conventional, FHA, or VA refinance in the past, then you should still be able to qualify even if you are on the verge of changing lenders. Sometimes it takes some time for lenders to determine if you are eligible for these types of programs, so in that case, it could take quite a while before you hear back from them. However, even if they decide you are not eligible, there are plenty of qualified lenders out there. So don’t give up. You never know when a lender might decide to approve your application.
There are special considerations for refinancing loans for spouses in order to qualify. When you and your spouse are applying jointly, both your application will be reviewed, but if both apply separately, then there are differences in how these are evaluated. In order for both your refinance rates to be comparable, both of you must agree to certain appraisal requirements, which will differ from state to state.