VA Streamline Refinance Guidelines
One of the greatest benefits to being a veteran of the United States Armed Forces is qualifying for a VA Loan. VA Loans is probably the best mortgage loan program because there is no down payment required, no mortgage insurance premium required, and VA loans probably have the best mortgage rates out of all mortgage loan programs. VA loans is specifically only for veterans of the United States Armed Forces and VA loans are guaranteed by the Department of Veteran Affairs. VA approved mortgage lenders have very little risk in originating and funding VA loans because the Department of Veteran Affairs guarantees VA loans in default against losses. That is why VA loans have zero down payment requirements and very low mortgage rates and no mortgage insurance required.
VA Streamline Refinance Basics
Homeowners with a current VA loan can now refinance their VA loan with a VA Streamline Refinance as long as they can benefit with a lower mortgage rate. The VA Streamline Refinance is commonly referred as the Interest Rate Reduction Refinance Loan, or IRRRL.
The Interest Rate Reduction Refinance Loan, IRRRL, is a popular mortgage refinance program for VA loan homeowners due to the simplicity and easy of the VA refinance mortgage loan process where it streamlines everything. There are no closing costs on behalf of the VA loan borrower because closing costs are added to the balance of the VA loan so there is no out of pocket expenses on behalf of the VA mortgage loan borrower. There is no appraisal required and no income verification required.
Qualification Requirements For IRRRL
To qualify for a IRRRL, the VA loan borrower need to be current on their VA loan for the past 12 months. One time 30 day late payment is permitted by certain VA mortgage lenders but not in the most recent six months. The new VA refinance loan payment needs to be lower than the previous VA loan payment and you can only do a rate and term VA refinance mortgage loan. Cash out is not permitted on a IRRRL. You need to be an owner occupant.
Cash Out Refinance VA Loans
Homeowners with VA Loans can also qualify for a cash out VA loan. A homeowner can get up to a 90% loan to value on a cash out VA refinance mortgage loan. Unlike the VA streamline refinance mortgage loan, with a cash out refinance VA loan, you need to have a new appraisal and income documentation and credit scores are required. You do not have to go with your current VA mortgage lender and can pick any VA approved mortgage lender for your cash out VA refinance mortgage loan.