The VA streamline refinance allows veterans with current VA home loans to refinance to lower interest rates with low credit score requirement, and no income verification. This new loan is done in about 3-4 weeks with little effort from the Veteran.VA streamline loans are a great way for Veterans to take advantage of historically low interest rates.
VA Streamline loans let you refinance your mortgage with no out-of-pocket expenses. There are two different ways a lender can help you with a VA refinance. One is that you take a slightly higher interest rate and the lender picks up all costs. The other option is to get the lowest possible interest rate available and just roll in the leftover fees involved.
This program also allows you to roll 60 days of interest in the new loan this allows you to skip two house payments. This program also allows you to get cash back from your Impound/Escrow account with a new loan. When doing a VA streamline, there are a few options available to the Veteran.
The fixed VA Hybrid has a lot of benefits, so think about the time frame that you will realistically keep this loan or home. Will you possibly refinance for other needs such as cash out, home improvements, sell, move up or relocate these are just a few reasons the home owner should not pay the higher 30 year interest rate. In these cases use the Hybrid because the bottom line is if you are not keeping the same home loan for 30 years and 95% of home owners Do Not, you should not be paying the higher interest rate of the 30 year fixed. This can save you thousands of dollars a year safely with the Hybrid as it is a VA designed home loan to help Veterans.
The next option is to choose which loan term you want (15yr or 30yr). Again, each of these has their benefits. By speaking with one of our VA loan advisers that will be happy explain all of the options available to you.
IRRRL Facts for Veterans IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a "Streamline" or a "VA to VA." Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate. When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase. No appraisal or credit underwriting package is required by VA. You should be aware, however, that lenders may require an appraisal and credit report anyway.
A certificate of eligibility is not required. Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility. An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs. (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage). No lender is required to make you an IRRRL, however, any lender of your choice may process your application for an IRRRL. While it might be the best place to start shopping for an IRRRL, you do not have to go to the lender you make your payments to now or to the lender from whom you originally obtained your VA Loan.
Some lenders may say that VA requires certain closing costs to be charged and included in the loan. Remember - The only cost required by VA is a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan. An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance. It must be a VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.
The occupancy requirement for an IRRRL is different from other VA loans. When you originally got your VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL you need only certify that you previously occupied it. The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you a lot of money in interest over the life of the loan, no loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate.