Ginnie Mae Clarification of VA Loan Seasoning Requirements

Ginnie Mae All Participants Memorandum (APM) 19-03 issued March 29, 2019 clarified a number of the requirements detailed in Ginnie Mae APM 18-04 issued May 30, 2018 regarding loan seasoning on VA transactions

Applicable Transactions

Ginnie Mae seasoning requirements apply to all loans being paid off with a new VA cash-out loan (existing FHA, VA, and conventional loans)

Modified Loans

Seasoning requirements apply to a loan that has previously been modified and is then being refinanced.

Loans Without Scheduled Payments (excluding construction to perm)

  • Loans without a scheduled monthly payment are exempt from seasoning including:
  • Reverse mortgages, and
  • Balloon mortgages. If interest-only payments were required on the balloon mortgage, (other than a construction loan) then seasoning requirements apply.

Construction Permanent Financing Transactions:

Seasoning requirements are subject to the following:

  • If the new subject loan is a refinance, seasoning requirements apply
  • If the new subject loan is a purchase, seasoning requirements do not apply

The VA guidelines have been clarified with this information and posted on the Homebridge website at www.homebridgewholesale.com

If you have any questions, please contact your Account Executive.