Now that it’s springtime, baseball teams are starting their spring training and the heat is beginning to come back. The temperature isn’t the only thing beginning to rise though; interest rates are at a 3-year high and back in the mid 4’s on average. Even with rates going back up, many borrowers are starting to take advantage of their equity positions through a cash-out refinance. However, there is a lot of confusion lately about the seasoning requirements of FHA and VA refinances. Many borrowers will be doing a conventional refinance, but there are still numerous borrowers taking advantage through VA and FHA loans as well.

As announced in GNMA APM 18-04, all VA refinances have the following seasoning requirements. The note date of the refinance loan must be on or after the later of:

a). the date that is 210 days after the date on which the first monthly payment was made on the mortgage being refinanced, and

b). the date on which 6 full monthly payments have been made on the mortgage being refinanced.

APM 19-03 clarifies that the seasoning requirement applies to VA loans paying of FHA and Conventional loans as well. These requirements apply to VA Interest Rate Reduction Loans and VA cash-out refinances.

As announced in GNMA APM 17-06 all FHA Streamline and Cash-Out Refinances must meet the following seasoning:

Effective on or after April 1, 2018, streamlined refinance loans and cash-out refinance loans are eligible if and only if:

a). the borrower made at least six consecutive monthly payments on the loan being refinanced, referred to hereinafter as the Initial Loan, beginning with the payment made on the first payment due date; and

b). the first payment due date of the refinance loan occurs no earlier than 210 days after the first payment due date of the Initial Loan.

This applies regardless of the type of loan the FHA Cash-Out loan is paying off. With equity positions increasing so drastically, borrowers have the ability to use that equity towards paying off debt, home renovations, other real estate investment options, and/or other investment ventures. Therefore, it’s important to know these timetables.

For further information regarding refinancing and investor-specific loan programs, always feel free to contact me directly!

ANDREW AUGUSTYNIAK  Branch Manager/Loan Officer
Call or Text: 480.735.4095
3303 S Lindsay Rd, Bldg 2, Suite 104, Gilbert, AZ 85297


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LO Licensing: AZ LO-0921752  CA-DBO911628  OR  WA-MLO-911628 NMLS-911628   Company Licensing: Peoples Mortgage Company, A DBA of Moria Development, Inc.  AZ BK-0904164  California – FLL603L266 / RMLA4130661, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act :  OR-ML-5111  WA-CL-6274 NMLS-6274