Mortgage Refinance Programs - find the right mortgage.

Conventional
(up to 95-100% Rate Term, up to 85% Cash Out- for good credit, the best rates)

General Requirements-

Good Credit (some minor dings allowed)

Maximum Loan Amounts:

Single Family Residence- $275,000

Exceeding the Loan Limits- refer to the jumbo programs, or consider taking a second mortgage to cover the portion that exceeds the loan limit.

Income Requirements: (Monthly Debt vs. Monthly Income)

Top Ratio: 28% or less (Monthly Housing Expense)

Bottom Ratio: 36% or less (All Monthly Debts including Housing)

Exceeding Debt Ratios: you may exceed these ratios if there are compensating factors, or if you qualify under desktop underwriting.

Bankruptcy- must have been discharged at least four years ago, and credit must be re-established.

Desktop Underwriting- allows for more borrowers to be approved for conventional mortgages, even though they may not meet the above classic approval guidelines. (Click for more details).

Available Refinance Programs-

95% Rate-Term*- This a special type of refinance that has specific requirements. It requires: 1) that you are currently in a conventional mortgage, 2) the maximum amount financed is 95% of the home's value, 3) cash out is not allowed, and 4) the costs of refinancing cannot be included in the loan and therefore must be paid out of pocket..

Up to 90% Rate-Term*- This program allows you to lower your interest rate as long as you are borrowing less than 90% of your home's value. All closing costs can be included in the new mortgage. (Cash out is limited to less than 1% of the loan amount)

Up to 85% Cash Out*- This program allows you to get cash out up to 85% of your home's value. All closing costs can be included in the new mortgage, and if possible you can a lower your interest rate at the same time.

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.

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FHA/VA
(up to 95-100% Rate Term, up to 85% Cash Out- for good to fair credit, decent rates)

General Requirements-

Good to Fair Credit (some dings allowed)

Loan Limits:

FHA County Specific Maximum Loan Amounts- click here to see a list of county limits.

VA Maximum Loan Amount- $144,000 for Cash Out Refinance.

VA Maximum Loan Amount- $203,000 for Rate-Term Refinance.

Exceeding the Loan Limits- depending on your credit refer to the conventional programs (good credit) or to the non-conventional programs (no credit or damaged credit).

Income: (Monthly Debt vs. Monthly Income)

Top Ratio: 28% or less (Monthly Housing Expense)

Bottom Ratio: 41% or less (All Monthly Debts including Housing)

Exceeding Debt Ratios: you may exceed these ratios if there are compensating factors, which are examined on a case by case basis.

Property Requirements: both FHA and VA properties must meet certain housing guidelines set by each agency.

VA Eligibility Requirement: your home must have been financed with a VA mortgage.

Bankruptcy- must have been discharged at least two years ago, and credit must be re-established.

Available Refinance Programs-

FHA up to 95-99% Rate-Term*- You this allows you to reduce your monthly principal and interest payment, by refinancing up to 95-99% of your home's value at lower interest rate. All closing costs can be included in the new mortgage.

Streamlined Refinance Available. This is a faster process that usually requires fewer steps and costs less money, but can have strict guidelines. For more details contact Velocity.

FHA up to 85% Cash Out*- This means after your mortgage balance you are allowed to get cash out up to 85% of the home's value. All closing costs can be included in the new mortgage, and if possible you can a lower your interest rate.

VA up to 100% Rate-Term + costs*- You this allows you to reduce your monthly principal and interest payment, by refinancing up to 100% of your home's value at lower interest rate. Closing costs are allowed to be financed in the new mortgage, even if they exceed the home's value.

Streamlined Refinance Available. This is a faster process that usually requires fewer steps and costs less money, but can have strict guidelines. For more details contact Velocity.

VA up to 90% Cash Out*- This means after your mortgage balance you are allowed to get cash out up to 90% of the home's value. All closing costs can be included in the new mortgage, and if possible you can a lower your interest rate.

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.

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Non-Conventional
(Programs for damaged credit)

General Requirements-

Damaged Credit (derogatory credit allowed)

Credit Grade- depending on how much derogatory credit you will be assigned a corresponding credit grade (A⁺, A, A-, B, C⁺, C, C-, or D), please contact Velocity to help you determine your credit grade.

Loan Limits:

Minimum Loan Amount- $30,000

Maximum Loan Amount- $500,000

Exceeding the Loan Limits- in special circumstances the maximum loan amount can be increased.

Income: (Monthly Debt vs. Monthly Income)

Cannot exceed: 40 - 55% (All Monthly Debts including Housing vs. Monthly Income). The amount of monthly debt allowed changes depending on your credit grade.

Bankruptcy- allowed, but it will impact your credit grade depending on when the bankruptcy was discharged.

Charge-offs, Collections, Foreclosures, & Judgments- allowed, but once again it will impact your credit grade, and paying off out certain accounts out of the new mortgage might be required.

Available Refinance Programs-

Please note: mortgage lenders that allow damaged credit will only loan a certain percentage of the home's total value. The percentage that they will loan is determined by your credit grade. (See the chart below).

General Guidelines on the Maximum Amount Financed based upon Credit Grading*:
This chart applies to both Cash Out & Rate-Term Refinances.

Credit Grade Max. Amt. Financed Credit Grade Max. Amt. Financed

A⁺ ^{95 - 100%} C⁺ 80%

A 90 - 95% C 75%

A- 85 - 90% C- 70%

B 80 - 85% D 65%

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.

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Alternative Programs
( up to 100% Cash Out or Rate-term Refinance- Good Credit/ Decent Rates)

General Requirements-

Good Credit (some minor dings allowed)

Why Alternative Programs- these programs allow 100% cash out or rate-term refinances. They can also offer decent rates for those that narrowly missed qualifying for a conventional mortgage.

Loan Limits:

Minimum Loan Amount- $30,000

Maximum Loan Amount- $500,000

Exceeding the Loan Limits- in special circumstances the maximum loan amount can be increased.

Income: (Monthly Debt vs. Monthly Income)

Cannot exceed: 38 - 50% (All Monthly Debts including Housing vs. Monthly Income). The amount of monthly debt allowed depends on the specific alternative program.

Bankruptcy- usually not allowed within the past four to seven years.

Available Refinance Programs-

Up to 100% Cash Out or Rate-Term*- this allows you to refinance up to 100% of your home's value in order to get a lower interest rate or to get cash out (or debt consolidation). Interest rates are a little higher than conventional rates, but alternative programs allow you to exceed conventional refinancing limits, and avoid some of the conventional requirements.

No Payments for Up to Three Months*- we have programs that allow you to defer your first payment for up to three months. This can be a great breather to help get you a head of your bills.

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.

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Jumbo
(Large Loan Amounts, usually anything that exceeds $240,000, for good credit)

General Requirements-

Good Credit (some minor dings allowed)

Loan Limits:

Loan Amounts between- $275,000 to $1,000,000 (the maximum loan amount allowed is dependent on the amount financed vs. the value of the home).

Income: (Monthly Debt vs. Monthly Income)

Top Ratio: 33% or less (Monthly Housing Expense)

Bottom Ratio: 38% or less (All Monthly Debts including Housing)

Exceeding Debt Ratios: you may exceed these ratios if there are compensating factors.

Bankruptcy- must have been discharged at least four years ago, and credit must be re-established.

Available Refinance Programs-

Maximum Loan Amount Chart for Rate-Term Refinances*- Use the table below to determine the maximum loan amount you can qualify for on a jumbo mortgage. The LTV stands for the amount financed vs. the value of the home. (Closing costs can be financed in the mortgage).

LTV Max. Loan Amt. LTV Max. Loan Amt.

90% $400,000 75% $700,000

85% $500,000 70% $800,000

80% $600,000 60% $1,000,000

75% Maximum Cash-Out*- The maximum amount you may cash out is 75% of your home's value, however there are strict limitations on how much cash out you may receive. For more details contact Velocity.

1st & 2nd Mortgage Combo (if you need to exceed the limits in the chart above)*

Rate-Term-

1st Mortgage Max Amt. 2nd Mortgage Max Amt.

75% 90%

Cash Out-

1st Mortgage Max Amt. 2nd Mortgage Max Amt.

75% 75%

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.

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Eliminate Mortgage Insurance with a 2nd Mortgage
(Refinance 1st or a 1st and 2nd Mortgage Combination to Avoid Private Mortgage Insurance)

General Description-

What is Mortgage Insurance? The primary purpose of Mortgage Insurance or Private Mortgage Insurance is to protect the lender from a loss when a buyer cannot make a large down payment. It can be a monthly, yearly, or one-time charge, however it is usually collected monthly as part of your mortgage payment.

When is Mortgage Insurance Required? It is required in certain mortgage programs when the first mortgage is more than 75% of the home's value. (For excellent credit, plus an up front fee you can be allowed to finance up to 80% of the home's value without mortgage insurance).

Available Programs-

Conventional & Jumbo Programs*-you can eliminate mortgage insurance by having 75% of your home's value financed by a first mortgage, and the remaining amount financed by a second mortgage. (If your home has appreciated you may be able to just use a first mortgage refinance, as long as the new mortgage will be less than 75% of the home's value).

Non-Conventional or Alternative Programs*- do not require mortgage insurance.

FHA/ VA Loans*- Mortgage insurance is an integral part of an FHA or VA loan, and it cannot be eliminated with a combination 1st and 2nd mortgage. However, you can refinance into a different mortgage program (conventional, alternate, etc.) from an FHA or VA loan to avoid mortgage insurance.

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.

*Velocityloan.com's information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or applicability to your circumstances. We encourage you to seek personal advice from one of our qualified mortgage professionals regarding your financing issues.