Outlined below are a few of the guidelines for a VA to VA refinance (VA IRRRL)
Generally the parties obligated on the original VA loan must be the same parties on the new loan and the veteran must still own the property. However, some ownership changes may be acceptable. The following table outlines when a change in mortgagors is permitted:
| Existing VA Loan | New VA Loans | Eligible Yes/No |
| Unmarried Vet | Veteran and new spouse | Yes |
| Unmarried Vet | Spouse only (deceased veteran) | No |
| Vet | Different veteran who has substituted his/her entitlement | Yes |
| Vet and Spouse | Divorced veteran only | Yes |
| Vet and Spouse | Veteran and different spouse | Yes |
| Vet and Spouse | Spouse only (deceased veteran) | Yes |
| Vet and Spouse | Divorces spouse only | No |
| Vet and Spouse | Different spouse only (deceased veteran) | No |
| Vet and Non-Vet (joint obligors) | Veteran only | Yes |
| Vet and Non-Vet | Non-Veteran only | No |
Interest Rate Decrease
- The interest rate of the new loan must be less than the interest rate of the existing VA loan unless refinancing an ARM to a fixed rate
Term Increase
- The term of the new loan may not exceed the original term by more than 10 years, subject to the maximum term of 30 years and 32 days
Payment Increase
- The P&I payment must be less than the P&I payment of the existing VA loan unless
- Refinancing an ARM to a Fixed Rate; OR
- The term of the new loan is less than the term of the existing VA loan
- If the PITI increases by 20% or more the veteran’s ability to repay must be demonstrated
You can find additional VA refinance information on our website http://www.madisonmortgageguys.com
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