VA Streamline Refinance Guidelines And Requirements

This BLOG On VA Streamline Refinance Guidelines And Requirements

VA loans are the best home mortgage program in the nation. However, not everyone can qualify for a VA loan. Borrowers need to either be active and/or retired members of the United States Armed Services with a valid Certificate of Eligibility (COE).  One of the greatest benefits of being a veteran of the United States Armed Forces is qualifying for a VA Loan.

  • VA Loans is probably the best mortgage loan programs in the United States
  • Lenders can offer 100% financing with no mortgage insurance at low rates on VA loans due to the government guarantee

This because of the following:

  • There is no down payment required
  • There is no mortgage insurance premium required on VA loans
  • VA loans probably have the best mortgage rates out of all home loan programs
  • There is no maximum loan limit on VA loans

VA loans have lenient agency mortgage guidelines than any other loan program.

Benefits Of VA Loans

VA loans are specifically only for veterans of the United States Armed Forces:

  • VA loans are guaranteed by the Department of Veteran Affairs
  • VA approved mortgage lenders have very little risk in originating and funding VA loans
  • This because the Department of Veterans 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

In this article, we will discuss and cover VA Streamline Refinance Guidelines And Requirements.

VA Streamline Refinance Guidelines Basics

What are the basics of the VA Streamline Refinance Guidelines

Homeowners with a current VA loan can now refinance their current high-interest VA loan with a VA Streamline Refinance. This holds true as long as they can benefit from a lower mortgage rate. Mortgage rates are at historic lows. Many homeowners with higher mortgage rates on their VA loan can benefit by refinancing with an IRRRL at today’s low mortgage rates:

  • The VA Streamline Refinance is commonly referred to 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
  • This is due to the simplicity and ease of the VA refinance mortgage loan process where it streamlines everything
  • There are no closing costs on behalf of the VA loan borrowers
  • Closing costs are added to the balance of the VA loan
  • 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 an IRRRL, borrowers need to be current on their VA loan for the past 12 months.

  • One time 30-day late payment is permitted by certain 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
  • Borrowers can only do a rate and term VA refinance mortgage loan
  • Cash-out is not permitted on an IRRRL
  • Borrowers need to be an owner-occupant

The borrower’s credit scores determine mortgage rates on VA loans.

Cash-Out Refinance VA Loans Versus VA Streamline Refinance Guidelines

What is Cash-Out Refinance VA Loans versus VA Streamline Refinance Guidelines

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 cash-out VA refinance mortgage loan
  • Unlike the VA streamline refinance mortgage loan, with a cash-out refinance VA loan, borrowers need to have a new appraisal and income documentation and credit scores are required
  • Borrowers do not have to go with their current VA mortgage lender

Homeowners can pick any VA approved mortgage lender for their cash-out VA refinance mortgage loan.

Qualify For VA Loans With Direct Lender With No Overlays

Gustan Cho Associates Mortgage Group are national lenders with no overlays on VA Home Loans. VA does not have any credit score or debt to income ratio requirements. Most lenders have lender overlays on VA Home Loans. Not GCA Mortgage Group at USA Mortgage. We just go off automated underwriting system findings. All of our pre-approvals at GCA Mortgage Group are fully underwritten and signed off by our mortgage underwriters. This is why the team at GCA Mortgage Group close 100% of all of our VA Home Loans. To start the pre-approval process, contact us at GCA Mortgage Group at 262-716-8151 or text us for a faster response. Or email us at The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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