Lenders are adding all sorts of additional requirements for refinances. They require minimum credit scores, minimum savings, and other stipulations or they will deny a VA loan refinance. These requirements are not according to VA rules. By making a few key changes we could help more American Veterans stay in their homes by lowering their payment -- without bailout money
Washington DC (PRWEB) February 24, 2009
According to LowVARates.com, mortgage lenders have recently added requirements that prevent Veteran's from refinancing their VA loans. Vets who want to reduce their mortgage payment and stay in their homes are facing barriers. Many are not able to take advantage of historically low interest rates which they desperately need.
New requirements from lenders have become huge barriers for Vets. The problem is that lenders are asking Vets to meet additional requirements for loans - requirements that are not part of VA rules.
"Lenders are adding all sorts of additional requirements for refinances. They require minimum credit scores, minimum savings, and other stipulations or they will deny a VA loan refinance. These requirements are not according to VA rules. By making a few key changes we could help more American Veterans stay in their homes by lowering their payment -- without bailout money," said Hailey Marie of LowVARates.com.
Some lenders are denying credit and income worthy veterans who hope to refinance because they live in an area with declining home prices. This applies to almost every city in the country right now. While it's important for lenders to be more cautious in who they will lend to, what lenders are doing is negatively affecting the economy. Our Veterans have given so much to our country and changes to regulations will help more Veterans keep their homes.
"I have a very credit worthy strong working Veteran home owner who has a VA loan at 6.75%. I could place him into a 5.5% loan and save him 200 dollars a month. This is over $2000 a year. That is much bigger than any stimulus check or refund. It's also ongoing. The catch is the Vet put his wife on the loan 3 years ago. She has horrible credit and has lost her job. She is now seen as a liability and credit threat. Because of that NO LENDER (under current guidelines) is willing to lend this family the hand they need and deserve," said Marie.
The VA and those in congress should address these issues by allowing Vets to remove a spouse with bad credit from a VA loan. Lenders can mitigate risk by verifying employment and income of the working spouse.
Below is a current list of Lenders/Mortgage Companies that require these new (restrictive rules)
Plaza Home Mortgage
Taylor Bean and Whittaker
And the list keeps growing!
LowVARates.com hopes lenders or lending rules will change. Veteran's should be able to remove a spouse from the loan if the spouse is a credit risk. Doing so means Veterans will get a lower rate at a time of crisis. This solution benefits both the VA and the lender. The VA will get a loan that has a lower chance of default and the lender services a loan with no negative credit on it.
LowVARates.com is dedicated to servicing Veterans with mortgage loan options and programs. At LowVARates.com we believe that Veterans deserve to live the AMERICAN DREAM of home ownership.
# # #