What is a VA Streamline Refinance Loan?
The VA streamline refinance is the quickest, cheapest, and most beneficial type of refinance for veterans who currently have a VA home loan. VA refinance rates are at historic lows. If you are interested in reducing your interest rate and monthly payment, it’s worthwhile to check current VA streamline rates.
The VA streamline is one of the only refinance programs available in 2017 that allow you to qualify without income or bank account verification. It’s available to those with less than perfect credit. It is one of today’s quickest and easiest refinance options.
The VA streamline helps veterans lower their mortgage rate and payments. When rates are low like they are now, veterans can refinance into a new loan based on today’s rates, and often reduce their monthly payment quickly and easily.
This loan type, also called the Interest Rate Reduction Refinancing Loan (IRRRL) eliminates many of the roadblocks that hold up applicants on other types of refinances.
Streamline Refinance Advantages
- Refinance your existing VA loan to a lower interest rate.
- This loan can be done with “no out of pocket money” by including all costs in the new loan, or by making the new loan at an interest rate high enough to enable you to pay the costs.
- The VA does not require an appraisal, income or employment verification’s, a credit report or termite report, as long as the current mortgage has been paid as agreed for the last 12 months and is up to date at the time of refinancing.
- You are allowed to include up to $6,000 in your refinancing loan for the purpose of energy efficient home improvements.
Streamline Refinance Basics
- No assumptions are allowed.
- Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, the refinance must result in a lower interest rate.
- 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 that lien so that your new VA loan will be a first mortgage.
- The VA has a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.
- You cannot receive any cash back.
- You don’t need to use your Certificate of Eligibility (CoE) for the refinance, your lender can use the VA’s e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.
- Any other liens must be subordinated to the VA loan.