Popular VA COVID Question…Answered! If I had to exercise my right to forbearance during COVID and am now back to work, can I refinance my loan? To refinance under the VA Interest Rate Reduction Loan, or a VA Cash-Out, a borrower must have made at least 6 consecutive monthly payments on the loan being refinanced. So, if you made 6 consecutive payments prior to forbearance, you can refinance now. If you made fewer than 6 consecutive payments prior to forbearance, then you will need to make 6 consecutive payments after forbearance. Let’s chat and plan your strategy!
Related Article Title: VA Circular 26-20-25 Change 1, Impact of CARES Act Forbearance on VA Purchase and Refinance Transactions, September 15, 2020, Effective immediately. Written by: Tracey Rumsey, Staff Writer How to guide your clients who exercised their Forbearance rights under the CARES Act will be an ongoing topic for mortgage professionals. In this update […]