IRRRL Va streamline loan question

[kathryn1209]

I bought in April ‘23 when rates sucked (7.25). I heard irrrl was available at navy federal (5.6) and they told me I met there requirements and started the irrrl process in Dec. I submitted full doc’s and was in underwriting and they just denied me and said I don’t meet Va eligibility. According to the loan officer, seasoning of 12 months is required, while everything I read from the Va about irrrl is 6 months, so maybe navy has there own rules? I have 4 months to wait according to there rules, but I rather not wait. Can someone tell me if they used navy fed irrrl under 12mo or if they can recommend another ethical Va friendly lender?

 

[charles15]

@kathryn1209 It's 210 days from your first payment date, not six months, until you can close on an IRRRL. Lenders can have overlays, but that's unusual.

 

[kathryn1209]

@charles15 I closed in late April so my first payment was June. So 210 days later is Jan?

 

[charles15]

@kathryn1209 Yes. Find a new lender if they're telling you that you need 12 months.

 

[kathryn1209]

@charles15 Yes I’m working on a new lender but NF had the best rate by almost 1/2% so I’d like to get them straightened out before giving up however the loan officer was sure she was correct.

 

[ilovejesus123]

@kathryn1209 You'll need 6 on time payment plus 210 days.

 

[kathryn1209]

@ilovejesus123 So 13 months? That’s what my loan officer is telling me but everything I read direct from every other source including the Va, says 210 days after the first payment. I thought the 6 months on time is concurrent to the 210 days.

 

[matthew45taylor]

@kathryn1209 I tried to do an IRRRL w/Navy Fed and they literally couldn't figure it out. Kept insisting the math was not saving me enough(lowering my rate by 1.5%) even though it clearly was.

Called a broker. Closed on the re-fi like 15 days later.

Navy Fed is not great for mortgages, IMO.

 

[kathryn1209]

@matthew45taylor I have a friend who got a home equity loan and he said it was super easy. I feel like my LO is screwing with me. I want to appeal the underwriting’s decision just based on the fact they are not understanding or following the Va rules. The LO made the appeal as difficult as possible and insists all communication regarding the appeal be done in PDF!? I’ve had to transfer all my statements, documents, and emails into PDF files which isn’t the easiest. It’s crazy that before the denial, regular email was fine. We have an appt Monday at a physical branch with a local loan officer. I am ready to give up with navy and use nbkc, but I want to follow this process through to find out why I was denied.

 

[paullivesgaussabides]

@kathryn1209 I used Veteran’s United initially to get my VA loan. After closing, they sold the loan to PENNYMAC and I’ve dealt with them ever since. 6 months after I bought, they actually approached me about an IRRRL. Dropped a whole percentage off my rate and I went 2 months without paying my mortgage thanks to the new closing dates. It added the closing costs to my new loan (which was only like 2k), so I didn’t pay a dime for the process. Now my payments are $200 less a month (although I still pay the same, just put that $200 towards the principle). Not sure if Navy Fed has different rules, but regular rule is 6 months

 

[kathryn1209]

@paullivesgaussabides I’ve checked with nbkc, which was recommended on another military forum. They are also 6 months till irrrl. There rates were a little worse than navy but better than usaa. I’m going to shop around but hate getting all these spam calls once you get on a refi internet list.

 

[kathryn1209]

I called 3 other lender’s and they all said 210 days to prevent churn. I’m wondering if the navy loan officer was new. She said 6 months plus 210 days so over a year. I had a good rate with one float down so I would like to stay with NF.

 

[kathryn1209]

I called navy and spoke to a different LO and she agreed with me and suggested I appeal. She was great but told me I have to work with my original LO. I emailed original LO and she stated I have one appeal and I should clearly state what I’m appealing and provide proof in pdf. I’m really annoyed that I have to appeal to them to just follow VA rules and it’s up to me to provide proof.
Crazy but I have 5.6 locked so I’ll give it one more day before jumping ship.

 

[kathryn1209]

I’m closing in a couple days with nbkc, who has been great. I don’t recommend NFCU home squad.