Mississippi Administrative Code › Title 25 - Military and Veterans - Veterans' Home Purchase Board › Part 202 - Loan Policies › Chapter 1 - Loan Refinancing Policy › Rule 25-202-1.2 - Conditions

Current through June 25, 2024
The Board shall consider, on a case by case basis,
				  refinancing of loans under the following conditions:
A. If a veteran has a temporary loan
				originally made for the purpose of acquiring the house. (The Board has defined
				a temporary loan as a loan with an initial term of
three years or
				less.
Balloon notes with an initial balloon date of
Seven (7)
				years or less may be considered a temporary loan provided that it can be
				determined that the intent of this loan is temporary due to construction,
				repairs, the lack of available permanent financing or other such verifiable
				reason.
)
B. If a veteran has
				a loan in place with a variable rate of interest, terms or payments,
and
the loan was made with temporary intent. If such loans have a
				pre-payment penalty, the Board will construe that the lender has an objection
				to an early payoff and that the loan was
not
made with temporary
				intent.
C. If a veteran is
				experiencing a hardship due to no fault of his or her own, and is in jeopardy
				of losing his or her home, and the refinancing will help prevent the loss of
				the home. A case of this nature is to be reviewed by the Board on a
				case-by-case basis. If the loan securing the home has a prepayment clause, the
				Board will ascertain the benefit of an early payoff of the loan on a
				case-by-case basis. Any prepayment penalty and /or closing costs may be
				included in the new loan amount financed subject to VA rules and regulations
				regarding refinancing.
D. If a
				veteran has obtained a construction loan in order to build a house. The
				Veteran's Home Purchase Board may pay off any loans or liens pertaining to the
				land or construction of the house once the house is completed and as long as
				the loan is not a permanent loan. This is subject to VA rules and
				regulations.
E. When it is
				determined by the Board of Directors of the VHPB that due to the state of the
				economy, the mortgage market or other reason or condition that may have an
				adverse effect on the trust fund or present mortgage customers, the Board may
				at its discretion allow for the refinance of portfolio loans provided the
				following:
1. Funds are available to the Board
				from the issuance of its notes or bonds in amounts in excess of the funds
				required for applicants on a waiting list for their first loan from the
				Board.
2. The veteran has an
				outstanding mortgage or mortgages (one must be with this agency) on the
				property to be refinanced.
3. The
				refinanced loan must comply with the Department of Veterans Affairs guaranteed
				loan program guidelines for refinance.
4. The refinance loan shall be limited to the
				payoff of the existing mortgages plus the closing costs of the transaction and
				further limited to eighty percent (80%) of the property value or amount of the
				Department of Veterans Affairs guaranty available on the refinance loan not to
				exceed the Agency's limits.
5. The
				Board may establish interest rates, terms and conditions on refinance loans
				which may differ from original loans made by the board.
6. The loan or loans to be refinanced must
				have a payment record of no payments thirty (30) days late for the past 24
				months.
7. A second mortgage held
				by another lender will be allowed to subordinate to our first mortgage on a
				case by case basis.
In all of the above cases, the Board shall ascertain that the
				  veteran has not obtained and continued any form of temporary financing for the
				  purpose of waiting for financing by the Board when he could have previously
				  obtained adequate permanent financing.