In an effort to help veterans secure the lowest fixed interest rate available, the VA started an Interest Rate Reduction Refinancing Loan (IRRRL) program called the VA Streamline Refinance. This loan option is a way for veterans who currently have an existing VA loan to lower their interest rate with very little or no out-of-pocket costs. A VA Streamline Refinance is done with very little effort and can help veterans start saving immediately.
The Benefits of a VA Streamline Refinance are as follows:
No appraisal required
Reduced credit score standards
No disclosure of income or assets
No monthly mortgage insurance
Only a 0.5% funding fee on all interest reduction loans
No out-of-pocket costs
Opportunity to defer two months mortgage payments
Up to $6,000 available for Energy Efficient home improvements
The same basic rules apply. Your refinance must result in a lower interest rate, or you must switch from an ARM to a fixed-rate mortgage, and no cash out is permitted. To qualify for a VA Streamline, individuals must meet certain credit requirements, have an up-to-date existing mortgage, no more than one 30-day late payment within the last year, income documentation and employment verification.
To find out if a VA Streamline loan is the best option for you, please call 888-659-0033 and talk with one of our experienced loan officers.