Master Class on a VA IRRRL – Streamline Refinance 

Understanding the IRRRL: Three Main Criteria

1. Interest Rate Reduction: Your new interest rate must be at least half a percentage point lower than your current rate. For instance, if you’re at 6%, your new rate should be 5.5%.
2. Seasoning Requirement: You must have made at least six consecutive monthly payments and 210 days must have passed since your first payment.
3. Cost Recoupment: You should be able to recover all closing costs within 36 months from the savings achieved by refinancing.

10 Essential Checklist Items for Your VA IRRRL

• Interest Rate Check: Ensure your new rate is at least 0.5% lower.
• Loan Duration: You must have held your loan for at least 210 days from your first payment.
• VA Funding Fee Exemption: Verify if you are exempt and if you have paid a funding fee previously.
• Transactional Closing Costs: Understand your non-recoverable closing costs such as credit reports and recordation charges.
• Escrow Obligations: Know your escrow requirements to avoid cash out unexpectedly.
• Skipping Payments: Be cautious; you never truly skip a payment—it’s rolled into your loan.
• Lender Credit: Aim for a credit covering your closing costs and VA funding fee.
• Payoff Understanding: Know your exact payoff to avoid surprises at closing.
• No Cost vs. No Cash: Clarify if ‘no cost’ loans truly cover additional costs or roll them into your loan.
• Protection Rule: Ensure you recoup costs within 36 months to maintain loan effectiveness.

Additional Insights

VA loans are versatile and beneficial, even if your property becomes an investment. If your property was a primary residence, you can still access IRRRL benefits post-relocation.

About the Author

Kevin Retcher, a veteran-owned mortgage broker in Virginia, specializes in VA loans across Virginia, Maryland, and DC. With a network spanning 32 states, Kevin’s insights are invaluable for navigating VA loan intricacies.

For personalized guidance and checking live rates, reach out or visit Kevin’s website. His commitment to helping fellow veterans is rooted deeply in understanding their unique financial needs.

Conclusion

The VA IRRRL is an exceptional tool for financial savings and stability for veterans. Use these guidelines to navigate your refinancing options effectively. Embrace the strategy Gen Z veterans are already leveraging, ensuring your financial journey is both strategic and rewarding. Remember, as Kevin says: “Semper Fi.”

In recent years, multi-generational homebuying has gained significant traction among families worldwide. In 2024 alone, 17% of all homes were purchased by multi-generational households, making it the highest recorded level since data collection by the National Association of Realtors began in 2013.

Understanding Multi-Generational Home Buying

This trend is particularly evident among different generations. Gen X buyers lead the charge at 21%, while younger baby boomers and millennials follow at 15% and 12% respectively. Looking ahead to 2025, 28% of prospective buyers consider entering into a multi-generational living arrangement, showcasing a continued interest in this lifestyle.

Why Choose Multi-Generational Living?

The reasons for opting into multi-generational homes are diverse. Cost savings remain the primary driver, with 36% of buyers citing it as their main motivation, especially against the backdrop of escalating home prices and interest rates. Additionally, 25% are motivated by the desire to care for aging parents, with adult children either returning home or never leaving—21% and 20% respectively—contributing to this dynamic.

Beyond practicality, multi-generational living provides built-in childcare and family support, offering emotional reinforcement and economic relief from day care expenses. Financial savings arise from sharing mortgage, utility, and other household expenses, thereby reducing the financial burden for all.

The Pros of Multi-Generational Homes

Multi-generational setups facilitate easier home financing due to multiple incomes, allowing families to purchase larger homes. The arrangement also fosters stronger family dynamics through regular interactions across generations, fostering bonds that benefit everyone involved. Additionally, families can adapt spaces with features like private suites, dual kitchens, and universal design elements to cater to specific needs of elderly parents or growing families.

Challenges to Consider

However, this living arrangement is not without its challenges. Reduced privacy, potential for conflicts, and lifestyle clashes are common due to shared spaces and differing routines or values. The household may become noisier and more stressful, especially for elderly members who may be less tolerant of increased activity or chaos.

Considerations for Multi-Generational Homes

Families considering such an arrangement should carefully plan to find suitable properties with features that meet everyone’s needs. Flexible layouts with open floor plans, private suites, and strong noise reduction features can enhance the living experience. Other considerations may include wide doorways, no-step entrances, and smart home features.

Conclusion

In summary, while multi-generational home buying offers significant financial, emotional, and practical benefits, it requires careful planning to ensure harmony and functionality. As the trend continues to grow, understanding the dynamics and preparing meticulously can lead to a rewarding living experience for all family members.

For those seeking guidance on this journey, Kevin Retcher from First Meridian Mortgage is an experienced resource, ready to assist in navigating multi-generational real estate markets. Whether selling two homes or buying one that fits varying family needs, expert advice is invaluable. Reach out today to explore how multi-generational living could benefit your family.

How the Increase in Area Median Income Empowers First-Time Home Buyers

In exciting news for high-cost areas, the area median income is set to increase in 2025, providing even more opportunities for first-time home buyers and those leveraging home loan programs with minimal down payments. Here’s how the changes will affect prospective buyers and what it means for the market.

Understanding the Changes

• The area median income for the Home Possible program, which is a 3% down payment initiative by Freddie Mac and Fannie Mae, will rise from $122,320 to $129,600 gross income annually.
• This increase allows buyers to qualify for more home, reduce interest rates, and make lower down payments of 3%, 5%, or 10%.

Benefits for First-Time Home Buyers

• First-time home buyer status is defined as not having owned a home in the last three years.
• The income cap for qualification is increasing from $183,400 to $194,400.
• This expansion means more individuals can qualify for better loan conditions, including lower loan-to-value price adjustments.

Calculating the Impact

• With the old income cap of $122,300: Monthly gross income is $10,191.
• Under new limits of $129,600: Monthly gross income is $10,800.
• Mortgage lenders typically permit using 50% of gross income for total debt; this example assumes a conservative 49%.
• Assume $1,000 for other debts, leaving more room in monthly calculations under new limits.

Loan Scenarios

• Old Scenario: With a 6.5% rate, loan amounts capped at approximately $631,984, with a purchase price of $671,446.
• New Scenario: Under new income limits, loan amounts elevate to $679,040 with a purchase price of $715,773, given 3% down at 6.5% interest.
• The difference is significant—$44,327 more purchasing power under new limits for only a 3% down payment.

High-Cost Area Adjustments

• Across the U.S., understanding whether you’re in a high-cost area is critical.
• Standard areas operate at 100% of area median income, high-cost regions at 120%, and for specific programs like Home Possible/Home Ready, it’s 80%.

A Boon for Realtors and Buyers Alike

• These changes, effective May 18th, mean more buyers will find options available to them, notably in metropolitan and high-demand areas.
• This provides an excellent opportunity for realtors in places like Fairfax, Arlington, and the broader DMV area.

Conclusion

This development is promising for real estate professionals and buyers, signifying expanded eligibility and more accessible homeownership. As the owner of First Meridian Mortgage, Kevin Recher is eager to assist you in navigating these changes. Feel free to reach out for more personalized advice.

Contact Information

For further assistance or questions about these changes, don’t hesitate to contact Kevin Recher at (703) 799-5626.

Here is a link to the Virginia, Maryland and DC county limits.

Th download a list of all counties 2025 AMI click here.  

Freddie Mac  page.

The Power of VA Home Loans: A Comprehensive Guide

As someone who has worked with countless veterans and active-duty members, I’ve always been an advocate for leveraging the benefits provided to those who have ser

ved our country. One of the most powerful resources available to eligible veterans, service members, and surviving spouses is the VA home loan. In this post, I’ll delve into why VA loans stand out among other types of loans, such as FHA and conventional loans, and how they can be advantageous for consumers, realtors, and lenders alike.

Understanding Eligibility and Benefits

First things first, let’s address eligibility. To qualify for a VA loan, you must be a veteran, an active-duty service member, or an eligible surviving spouse. Once you have this benefit, it does not expire. Whether you served 40 years ago or just returned to civilian life, as long as you don’t have an existing VA loan, you can apply for a new one.

Key Benefits:

1. Zero Down Payment: Unlike conventional loans, VA loans require no down payment, making it easier for veterans to purchase a home without the need to save a substantial amount of money.
2. No Mortgage Insurance (MI): VA loans do not require private mortgage insurance, which can save veterans hundreds of dollars each month.
3. Competitive Interest Rates: VA loans often come with lower interest rates compared to conventional loans, resulting in significant savings over the life of the loan.

How the VA Funding Fee Works

The VA guarantees 25% of the loan, which eliminates the need for MI. This guarantee is financed through the VA funding fee. For first-time use, the fee is 2.15% of the loan amount and increases slightly for subsequent uses. However, putting down 5% or 10% can reduce this fee. For veterans receiving VA disability benefits, this fee may be waived altogether.

Flexible Guidelines for a Smooth Process

VA loans offer more flexible income and credit guidelines compared to conventional loans, making it easier for veterans with lower credit scores to qualify. Additionally, the VA uses a residual income model, considering the money left over after expenses to ensure that veterans can comfortably afford their homes.

Addressing Common Misconceptions

Some real estate agents and buyers express concerns about VA appraisers. However, the VA’s Tidewater Initiative allows for additional comps to be submitted, which can challenge an initial low appraisal. These measures protect not only the veteran but also the sellers and buyers involved.

Conclusion: Why Choose a VA Loan?

In my career, I’ve never encountered a VA loan that was denied due to credit or income guidelines. The combination of no down payment, no MI, and competitive interest rates makes

the VA loan the best choice for those who have served. If you’re considering a VA loan or need help determining your eligibility, contact me, Kevin Retcher, at First Meridian Mortgage. I’m here to serve you just as you’ve served our nation, regardless of the state you’re in.

Let’s make the dream of homeownership a reality for our veterans.

Shopping 30 Lenders with One Loan Application: Your Ultimate Guide

Are you planning to buy a home or refinance in 2025? Navigating the mortgage market can be overwhelming, especially with so many lenders to choose from. But what if I told you there’s a hack to streamline this process? Through First Meridian Mortgage, you can shop 15 to 30 lenders using just one loan application and one credit pull. Let’s take you behind the curtains and show you how this works.

The Power of Mortgage Brokers

Mortgage brokers like us at First Meridian Mortgage are signed up with numerous lenders. We leverage advanced AI tools and loan sifting software to find the best rates tailored to your financial situation. Let me walk you through an example: Let’s say you want a conventional loan with 20% down, a 780 credit score, and a monthly income of $10,000 in the 22310 zip code. In just seconds, our system can pull quotes from 20 to 30 different lenders.

Understanding Lender Pricing

One of the things we do differently at First Meridian is keeping all lenders priced the same. This means we’re not incentivized to prioritize one lender over another for personal gain. Instead, we focus on finding the best interest rate and terms for you. For instance, some lenders might offer a credit back, while others might charge higher fees for the same deal, leading to substantial differences in cost.

The key takeaway is that not all lenders excel in every product category. That’s where the expertise of a mortgage broker comes in. We understand the nuances of lender offerings, speed, and services, ensuring we match you with the one that best meets your unique needs.

Protecting Your Information

Before you start shopping for a mortgage, there are a few crucial steps to safeguard your personal information. First, ensure you’re on the Do Not Call list and register for the opt-out prescreen with credit bureaus like Equifax, Experian, Inova, and TransUnion. This prevents your data from being sold as a “trigger lead” and bombarded with unsolicited offers after a credit pull.

First Meridian Mortgage Tools

At First Meridian, we’ve made the process even more accessible. Our website offers live rate quotes, appointment scheduling, and the ability to start a loan application at your convenience. You’ll also find our live interest rate quote tool, where you can check rates similar to what we see on our interfacing software, tailored to your information.

We provide a transparent, client-focused approach without pulling your credit until we’ve had an initial conversation. This ensures you remain in control of your data and the decision-making process.

Taking the Next Steps

Whether you’re purchasing or refinancing, the process of finding the right mortgage is simplified at First Meridian Mortgage. Our dedicated team is here to assist you at each step, ensuring you get the best possible deal without the hassle of shopping multiple lenders yourself.

For further information, or to start your home buying journey, feel free to contact me, Kevin Retcher, owner of First Meridian Mortgage. You can reach us via our website’s contact form or directly through our office and my personal line.

Conclusion

Choosing a mortgage doesn’t have to be daunting. With First Meridian Mortgage’s unique approach, you have the power to effectively compare and choose from a wide variety of lenders, all with just a single loan application. Sure to save time and secure the best terms, our services are designed to meet your needs seamlessly. I’m thrilled to guide you through this process, and as always, it’s my pleasure to serve you.

Contact
First Meridian Mortgage
Kevin Retcher
Phone: 703-799-5626 (Office) | 703-201-6138 (Cell)

To all the Marines, Semper Fi, and to everyone embarking on their home buying journey, let’s get started today!

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The Ultimate Guide to Buying a Home in 2025 This your your Home buying Playbook

Introduction

Buying a home is a monumental life decision that requires careful planning and a detailed understanding of what lies ahead. As the landscape of real estate continues to evolve, it’s critical to arm yourself with the knowledge and strategies necessary to navigate the process effectively. In this guide, we’ll break down the steps involved in purchasing a home, ensuring you’re well-prepared for the journey ahead.

Step 1: Prepare Your Finances

Before you dive into house hunting, your financial preparation should be as thorough as a Super Bowl pregame. Start by mapping out a detailed budget, considering all expenses over a couple of months. This will help you understand your disposable income and how a higher mortgage might impact your lifestyle. This analysis enables you to determine if you need to adjust your spending habits to accommodate a future mortgage payment.

Step 2: Safeguard Your Privacy

Protect yourself from unsolicited calls by registering at www.donotcall.gov. This action will prevent a flood of unwanted calls when your credit is pulled during the mortgage application process.

Step 3: Assemble Your Team

Research and interview potential loan officers and real estate agents meticulously. Recommendations from trusted friends or family members can be valuable, but always verify credentials and past performance. Utilize resources like Google, Yelp, Zillow, and social media to gauge their reputation. Once you narrow down your options, request different mortgage scenarios to compare offers comprehensively.

Step 4: Get Pre-Approved

After selecting your preferred loan officer, proceed with the pre-approval process. This involves providing your financial details and having your credit pulled. It’s important to ask for your three credit scores and ensure your application is thoroughly underwritten. This pre-approval step solidifies your buying capability in the eyes of sellers and is crucial before making any offers.

Step 5: Begin House Hunting

With your financial framework and team in place, start your search for the perfect home. Keep in mind your budget, even if you’re approved for more. Stay true to what aligns with your financial situation to prevent future strain.

Step 6: Make an Offer

Consult with your loan officer and agent before making an offer. Understand your negotiating power, especially if you qualify for an appraisal waiver. This waiver can provide a competitive edge, making your offer more appealing compared to others that require additional steps like an FHA or VA appraisal.

Step 7: Finalize the Contract

Once your offer is accepted, inform your loan officer immediately. They will handle the appraisal and title work. Your agent will manage contingencies, such as home inspections, while you continue scrutinizing your insurance options and any potential issues that may arise from previous claims on the property.

Step 8: Clear to Close

The ‘clear to close’ phase signals all is set for closing. This involves completing any outstanding documentation and finalizing negotiations on contingencies with the seller. Once everything is in order, your loan proceeds to the closing department.

Step 9: Closing Day and Beyond

On closing day, conduct a final walkthrough, verify all details, and make sure your utilities and legal documents are prepared. Closing can be a complex process, so double-check all instructions, especially concerning fund transfers to avoid potential scams.

Conclusion

With these steps, you’re equipped to manage the home buying process with confidence and clarity. Remember, communication with your assembled team is key to ensuring a smooth transaction. Celebrate your new home purchase and keep open lines of communication with your trusted advisors to aid with any post-purchase questions or concerns.

Congratulations on your new home! Enjoy the living space you have worked hard to achieve. If you need more guidance, don’t hesitate to reach out to your mortgage or real estate professionals.

Are you a prospective homeowner? Prepare yourself for the journey to your dream home by embracing the cornerstone of financial stability: budgeting. As Kevin Retcher of First Meridian Mortgage emphasizes, practice can transform you from a hopeful buyer into a confident homeowner. Let’s delve into how budgeting works its magic.

The Essence of Practice

In any field, practice is what separates the great from the good. Kevin draws an insightful parallel between mastering a craft and preparing for homeownership. The essence here is practicing financial responsibility before diving into the big commitment of buying a home.

A Legacy of Budgeting

Kevin recalls his father’s meticulous budgeting with fondness. While ledgers might have been the tool of choice in the past, modern times present us with more convenient methods. Resources like freddymac.com equip you with budgeting worksheets that simplify tracking your finances. These tools help you outline your monthly expenditures, laying a strong foundation for your financial discipline.

Budgeting for the First-Time Buyer

For new homebuyers, Kevin underscores starting a practice budget before even meeting a loan officer. Spending two or three months tracking your expenses can be incredibly revealing. Websites like freddymac.com offer accessible worksheets to facilitate this process. By comparing your anticipated mortgage payment to your current rent, you can simulate future financial conditions.

Build Your Financial Confidence

One practical strategy is using your budget to test your ability to save additional funds. Suppose your rent is $2,100, and you’re eyeing a mortgage of $3,000. Practice by saving the $900 difference each month. This method not only helps you adapt financially but also contributes to your savings for essential costs like the down payment and closing expenses.

Kevin advises doing this exercise both before and after meeting with a loan officer. This continuous financial practice sharpens your preparedness and supports your journey toward homeownership.

Your Path to Homeownership

Budgeting is not just about numbers; it’s about building habits. By ingraining the discipline of budgeting in the months leading up to, during, and after securing your loan, you pave your way to successfully owning your home. This guidance from Kevin Retcher is more than just a tip—it’s a transformative strategy.

As you embark on the rewarding path to owning your home, remember that budgeting is your ally. It’s a small step that promises a substantial impact on your financial readiness and peace of mind.

Find Freddie Macs Budget worksheet here.

When it comes to purchasing a million-dollar home in Northern Virginia, understanding the associated closing costs is crucial.

I’m here to simplify this complex topic. Let’s dive into a detailed explanation of typical closing costs and fees involved in such a transaction.

Understanding Closing Costs: A Line-by-Line Breakdown

Using the Good Faith Estimate format, we’ll break down the closing costs into several key categories. These categories include closing costs, prepaids, counting of the entire transaction, and the mortgage payment.

1. Loan Origination and Processing Fees: If there’s no origination fee required, it would typically show as zero. However, some lenders impose processing fees. Working with a mortgage broker may eliminate these, though I personally don’t charge a processing fee. Often, an underwriting fee ranging from $750 to $1,200 is standard.
2. Appraisal and Credit Report Fees: Appraisal fees range between $500 and $750 depending on factors like location. Similarly, credit report fees are rising, averaging between $110 and $150.
3. Tax Service and Flood Certification: These fees monitor your tax payments and identify if your property is in a flood zone. If your home moves into a flood zone, you’ll be required to purchase flood insurance.
4. Verification of Employment: Sometimes, obtaining employment verification comes with an added fee if your employer uses a third-party service such as the Work Number.
5. Settlement and Title Insurance Fees: Settlement fees in Northern Virginia can range between $495 and $1,200. Lenders’ title insurance is vital to protect against potential property liens.
6. Recordation and Tax Stamps: The recording of deeds and mortgages has associated fees. Additionally, state and city tax stamps add $1,586.50 and $47.50 respectively, determined by the state.
7. Owner’s Title Insurance Policy: While optional, this protects your interest in the property, countering potential claims against your ownership.

Total Cost Analysis

In Virginia, the closing costs for a million-dollar loan, assuming no down payment, amount to $16,182.52—approximately 1.6% of the purchase price.

Prepaids and Escrow

A crucial component is prepaids, which includes prepaid interest. It’s the only instance when interest is charged upfront, covering the period from purchase to month-end. Additionally, a one-year home insurance policy, estimated at $2,700, must be in place by closing. Starting an escrow account ensures timely tax and insurance payments.

Comprehensive Cost Overview

Combining all these factors, the closing costs and prepaids add up to $21,144, which equates to about 2.3% of the purchase price. Including the $100,000 down payment, you’ll need approximately $1,023,144 at closing.

Estimated Mortgage Payments

With a $900,000 loan at a 6.875% interest rate and a 780 credit score, expect a monthly principal and interest payment of $5,912. Adding insurance, taxes, and mortgage insurance, your total monthly obligation rounds up to $7,200.86.

Summary

Navigating the closing costs for a million-dollar home can seem daunting, but breaking them down into a line-by-line analysis helps demystify the process. It’s essential to have detailed conversations with your loan officer to ensure you’re comfortable with all aspects, from closing costs to monthly payments. For live mortgage rates click here.