From time to time wholesale lenders will send out updates to their mortgage brokers and bankers about IRRRL guideline changes. These are usually lender specific – and here is a recent update sent out by http://freedommortgage.com, a wholesale lender.
A 2055 Appraisal report is no longer required for VA IRRRL transactions!
Maximum 115% LTV/CLTV will be determined by obtaining an AVM from FMC’s approved AVM list (see Credit Policy 13-06 for further guidance). The AVM must provide an actual or estimated value for the subject property. The LTV/CLTV must be calculated using the value on the approved AVM for the subject property.
Other Program Features
A full appraisal is not required.
Credit score required to ensure that the borrower(s) meet the minimum 620 requirement (except for properties located in Hawaii with loan amounts greater than $1MM require a 700 credit score).
No ratio calculation. Repayment ability based on a 12 month history of timely payments.
Beginning Wednesday, April 3, 2013, an AVM only (from FMC’s approved AVM list) for LTVs up to 115% are eligible with all new transactions or existing transactions in which a 2055 has not been received.
IRRRL Lenders: Shop For Your Deal
Each VA approved lender who offers the IRRRL program may have different guideline overlays when it comes to things like appraisals, minimum credit scores and more. Be sure that you speak with multiple IRRRL lenders who can evaluate your personal situation and give you the best information possible for your situation. Each situation may be different – so it is important to speak with multiple lenders. Get matched with a great VA IRRRL lender today – submit your information below to get started.