AB REFINANCE PROGRAMS ON HOME LOANS
There are 2 programs of home loan refinancing available for veterans; namely the (1) AB Simplified Refinance and (2) the AB Cash-out Refinance.
AB Cash-out Refinance
This type of loan is for veterans who have built equity on their homes over a period of years and now wish to take cash-out on the excess equity built-up. You need not validate or justify the purpose for which the cash-out proceeds are to be drawn.
The essential difference between an AB cash-out refinance loan and an AB simplified refinance loan in terms of eligibility is that for a cash-out loan, an appraisal is necessary in addition to qualifying for it. Further, a funding fee of 3% becomes payable unless you are exempt; although the funding fee can be rolled on into the loan amount instead of having to pay it as an out of pocket expense.
Click Here For a Free Quote On a AB Cash Out Refinance Loan
AB SIMPLIFIED REFINANCE LOAN
An AB Simplified Refinance Loan is also appropriately termed an AB Interest Rate Reduction Loan (IRRL). This is a program more suitable for veterans who already have a running AB mortgage loan and wish to get a more favorable interest rate with a resultant reduced installment payment by refinancing. Here, you don’t have to worry about proving income, credit qualifying or getting an appraisal.
The only restraining factors here are that you need to be current with your mortgage payments and there should not be more than one late repayment exceeding 30 days within the last 12-month period. Further, consolidation of junior liens or cash-out is not permissible. Where cash-out or combining of 1st and 2nd mortgages is required, you have to fall back on a cash-out refinance loan.
A Comparison of the 2 AB Home Loan Refinance Programs
|
AB Streamline Refinance |
AB Cash-out Refinance |
If Cash-out is Permitted |
No |
Yes |
If Credit Qualifying is Required |
No |
Yes |
If Income is to be Substantiated |
No |
Yes |
If an Appraisal is Required |
No |
Yes |
Whether 1st and 2nd Mortgages could be Combined |
No |
Yes |
Maximum Loan Obtainable to Value (LTV) |
No Maximum |
90% |
Maximum Loan Amount Obtainable |
$417,000 |
$417,000 |
AB Funding Fee Chargeable |
0.5% (unless exempt) |
3% (unless exempt) |
Late Mortgage Payments Allowed Within the Last 12 Months |
1(30 day) |
0 |
If the Property Has To Be Owner Occupied |
No |
Yes |
|
