Mortgage guidelines have been changing frequently in recent months due to the COVID-19 pandemic. Government loan programs like VA, USDA and FHA loans have seen tighter underwriting and credit requirements in recent months. The good news in all of this is mortgage interest rates have remained low for well-qualified homeowners.
VA refinance opportunities remain strong for Florida Veterans with higher credit scores above 680. Interest rates have been staying in the 3-3.5% range for a while for well-qualified borrowers. However, we are finding that many applicants with credit scores below 680 are being hit hard with lender interest rate adjustments that can often remove any rate saving benefit.
Approved VA lenders and banks are still offering standard Interest Rate Reduction Refinance Loan (IRRRL) and also Cash-Out Refinance. In the past Cash-out refinance transactions were permitted to 100% loan to value. However, with the recent changes, this program may be limited to 90% to loan to value for most VA banks and lenders.
MORE: 4/28/2020: It’s important to note that the recent mortgage guidelines changes are likely temporary. Many industry experts believe the loan approval requirements should be back to pre Coronavirus levels by late summer.
VA streamline IRRRL refinance makes refinancing from one VA loan to another very simple. Often times requiring very limited documentation and no new appraisal of the property. This is great for homeowners that simply want to reduce their interest rate without cashing out any equity.
Cash out refinance customers will be required to fully document their application just the same as purchase loans. This includes full income and asset documentation along with a new appraisal verifying the property value.
Please learn more from the video below and contact us with questions. Happy to serve all of FL: Jacksonville, West Palm Beach, Pensacola, Key West, Naples, Tampa, Orlando, Ocala, Gainesville.