VA Updates - VA Seasoning and COE for IRRRLs
va seasoning requirement update
GNMA released APM 19-05 which is effective with refinance loans guaranteed on or after August 1, 2019. GNMA now aligns with VA's seasoning requirements, which require the note date of the refinance to be on, or after, the later of:
- The date on which the borrower has made at least six monthly payments on the loan being refinanced; and
- That date that is 210 days after the first payment due date of the loan being refinanced (previously the date the first payment was made)
va irrrl and certificate of eligibility (coe) reminder
As communicated in Announcement 2019-057, VA Circular 26-19-17, Funding Fee Guidance on July 2, 2019, a COE is now required for IRRRLs.
Please note that a cash out COE is not acceptable. When the COE is for an IRRRL, the Conditions section should not list the Refinance Restoration (Cash Out) condition.
Please reference the product profiles for the changes outlined in this announcement.