As a reminder, Ginnie Mae seasoning requirements must be met on all government streamline or cash-out refinance transactions, including all VA refinances. Ginnie Mae seasoning requirements can be found on the various PennyMac Product Profiles. Specific to VA refinances, IRRRL and full doc, the Note date of the (new) refinance loan must be on or after, the later of the date Remember that on loans with modifications, the above seasoning requirements are applied to the dates after the modification has been completed (e.g. the date that is 210 days after the first modified monthly payment due date on the loan being refinanced). Please refer to the specific government product
profiles for complete details on when seasoning is required. Best PracticesMany loan modifications are not reported. As a best practice, PennyMac encourages Correspondents to
Please contact your Sales Representative with any questions. January 07, 2022 VA Reminder – Seasoning Requirements for Refinances of Modified Loans Newrez LLC "Newrez" Approved Correspondent Clients: please note, as a reminder, there are seasoning requirements for all VA Refinance transactions that are based on the original terms of the Note unless the original Note was modified. A modification is a permanent change to the terms of the original Note. A forbearance is a temporary change to the terms of the original Note and follow separate guidelines. The seasoning requirements for VA IRRRL and Cash-out refinances are subject to the following requirements:
Clients and associates are advised to exercise due diligence when reviewing mortgage payment histories to identify mortgages that might have been modified within the previous 12 months. Many loan modifications are not reported or clearly identified on the credit reports and other verifications of mortgage documents. The following list of practices (not all-inclusive) may help identify if the original note was modified.
For loans underwritten by Newrez, the underwriter will require a copy of the original note along with the most recent mortgage statement. The above clarification is specific to refinances of mortgages that have been modified and does not apply to One-time Close Construction to Permanent loan modifications. Please refer to the Newrez VA Product Profiles for additional details. Prev Announcement Next AnnouncementWhat are VA seasoning requirements?Loan Seasoning
In order to qualify for a VA IRRRL, a VA loan must be seasoned for at 210 days and you must have made your mortgage payment for at least 6 consecutive months. The 210 day countdown begins from the due date of your first mortgage payment.
What is the seasoning requirement for a rate and term refinance?Refinance seasoning
Seeking to refinance your mortgage? You typically have to wait at least six to 12 months to do so after first taking out a loan, though there could be exceptions.
What is the waiting period for cash out transaction?Cash-out refinances require a six-month waiting period. You also have to build up enough equity in the home to qualify for a cash-out loan, which takes time.
Can you get cash out on a VA refinance?A VA-backed cash-out refinance loan lets you replace your current loan with a new one under different terms. If you want to take cash out of your home equity or refinance a non-VA loan into a VA-backed loan, a VA-backed cash-out refinance loan may be right for you.
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