VA Streamline Refinance
The VA Streamline Refinance, or Interest Rate Reduction Refinance Loan (IRRRL), is one of the best options for someone who already has VA Loan and would like to lower their monthly payment or take years off their mortgage. These are both achievable by lowering the interest rate on your current VA Loan.
The VA Streamline Refinance is really popular due to the limited documentation and closing in less than 30 days. To avoid out-of-pocket costs, homeowners can choose to roll the closing costs into the loan balance. Another option is to choose to have a slightly higher interest rate and have the lender pay for the closing costs instead of rolling them in. This option is good for veterans who plan to sell the home in the near future.
One rule for the VA streamline refinance is that the new monthly payment must be lower than the previous monthly payment. One exception to this rule is when you are refinancing from an adjustable rate mortgage to a fixed interest rate. Or if you decide to shorten the loan term, going from a 30 year to a 15 year.
VA Streamline/IRRRL Facts
- No appraisal required
- No out of pocket costs
- No more than one 30-day late payment within the past year.
- No cash back on VA Streamlines
- Limited documentation, no income verification
- Can be a fixed rate or adjustable rate loan.
- The VA funding fee is only .5% of loan amount (waived if 10% disabled)
VA Streamline Refinance Frequently Asked Questions
Does the VA set interest rates for VA loans?
No, the Department of Veteran Affairs (VA) does not set the interest rates nor are they are lender. VA approved lenders (mortgage companies) are the ones who set the interest rates and they will vary upon each lender.
Do I have to use my current lender to do a VA Streamline Refinance?
Not True! Any VA approved lender can do your VA streamline refinance. It’s a good idea to speak with a few lender, you might be surprised on how much you can save.
Have some lenders waived the credit score requirement?
Each lender has their own set of guidelines and credit score minimums. Some lenders offer non-credit qualifying streamlines as well.
Is there a no closing cost option?
Some banks will offer a no-out-of-pocket-closing-costs option, which means the closing cost is rolled in. While other banks will offer a true no-closing-costs option, where the lender pays for all the closings costs but this may come at a slightly higher interest rate. Your VA benefit specialist will help you make the right decision according to your plans with the property.
To speak with a VA loan benefits specialist, call the number above or fill out the short form and a specialist will contact you.