Available for VA loans only.
A refunding is when the VA buys your loan from the loan holder. Refunding may give VA flexibility to consider options to help you save your home that your current loan holder either could not or would not consider. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary. If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate. Any fees owed to the agent, VA, loan servicer and / or investor will be deducted at closing of the initial approval.
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