VA Streamline Refinance Mortgage Guidelines On VA Home Loans

This BLOG On VA Streamline Refinance Mortgage Guidelines On VA Home Loans Was PUBLISHED On January 12th, 2019

VA Loans is the best loan program in the United States.

  • Lenders can offer VA Loans with 100% financing and no mortgage insurance to qualified borrowers
  • VA mortgage interest rates are often the lowest out of all loan programs
  • VA Loans often has lower mortgage rates than conventional loans
  • This is due to the government guarantee by the Department of Veterans Affairs
  • VA partially insures and guarantees lenders in the event borrowers default on their VA Loans and the property goes into foreclosure

Homeowners with a higher mortgage interest rate VA Loan can refinance their current loan with a new VA loan at a lower rate. This is VA IRRRL.

What Are VA Streamline Refinance Mortgages

Homeowners with a current higher interest rate VA Mortgage can refinance it with a lower rate VA Streamline Refinance Loan. 

  • VA Streamlines are also referred to as IRRRL
  • It is a fast track VA refinance loan program
  • One of the easiest and fastest refinance loan program similar to FHA Streamline Refinance
  • Requires limited documents, no appraisal, no income documents, and takes no longer than two weeks
  • Gustan Cho Associates are national lenders with no overlays on VA Loans
  • Gustan Cho Associates only goes by VA Streamline Refinance Mortgage Guidelines with zero overlays

VA Streamline Refinance Mortgage Guidelines And Requirements

Per VA Streamline Refinance Mortgage Guidelines, VA offers lenders offer a fast track refinance loan program to existing borrowers with VA Loans called VA Streamline:

  • No minimum credit score requirement on VA IRRRL
  • No appraisal requirement on VA IRRRL
  • Primary and non-owner occupied properties are eligible properties
  • When streamline refinancing, the borrower must be current for the month due on their current VA Loans
  • Manufactured homes situated on the permanent concrete foundation are eligible for IRRRL
  • IRRRL is for rate and term refinance mortgage only
  • Maximum cash-back can not exceed $500
  • Borrowers who need cash-out refinance options can do so but need to do a full refinance and not streamline
  • 100% loan-to-value allowed on VA Cash-Out Refinance Mortgage

VA Streamline Refinancing Benefits

The economy is very hot.

  • The stock market is hovering in the 25,000 mark range
  • The Dow Jones Industrial Average has never been this high
  • Since President Donald J. Trump took office, the Great Recession has parted ways
  • Housing prices have skyrocketed year after year
  • HUD and FHFA has increased FHA and Conforming Limits the past three years due to rising home prices
  • Mortgage Rates have been the highest since the Housing Bubble Burst back in 2008
  • Despite record-high mortgage rates since 2008, the housing boom is in more demand quarter after quarter
  • No doubt there should be a mortgage rate correction coming sooner than later

Refinancing Current FHA Or VA Loans With Streamlines

When rates drop, every homeowner should consider doing a VA and/or FHA Streamline Refinance:

  • Most than likely, homeowners do not have to bring any money to closing
  • Closing can take place at homeowners residence
  • Current escrows will be closed and proceeds will be refunded to the borrower
  • Often times, homeowners will skip two monthly mortgage payments
  • Save money due to lower rates
  • Lower monthly mortgage payments
  • Very easy mortgage process with little paperwork required and two-week closing

VA Streamline Refinance Guidelines On Net Tangible Benefit

In order for lenders to proceed with Streamline Refinancing, borrowers need to meet net tangible benefit requirements:

  • Borrowers interest rate must be reduced by 0.5%
  • Borrowers need to recoup closing costs within 36 months
  • Or reduce the remaining loan term by 6+ month with a minimum of 0.125% interest rate reduction
  • Or convert from an ARM to a fixed rate when doing a VA streamline refinance mortgage

IRRRL Refinance Interest Rates On VA Loans

Mortgage Rates are currently the highest it has been since the 2008 real estate and credit meltdown. However, the indication is that rates may drop in the coming months.

When rates drop, homeowners with higher rates should be prepared in exploring doing a VA IRRRL:

  • Borrowers should start preparing by trying to get their credit scores maximized
  • Higher credit scores mean lower mortgage rates
  • Loan Level Pricing Adjustments Applies
  • Pricing adjustment are hits on mortgage rates
  • There are Loan Level Pricing Adjustments (LLPA) for the following:
    • Loan amount
    • Loan-to-value
    • Occupancy type
    • Number of units: There are LLPA on 2 to 4 units
    • Property state and county
    • The credit score of borrowers

VA Streamline Mortgage Guidelines On Bankruptcy 

Borrowers can qualify for VA Streamline Mortgages during and after bankruptcy:

  • Chapter 7 Bankruptcy must be discharged to qualify for IRRRL
  • Borrowers can qualify for VA IRRRL during Chapter 13 Bankruptcy one year into Chapter 13 Repayment Plan
  • Chapter 13 does not need to be discharged
  • There is no waiting period after Chapter 13 Bankruptcy discharged date
  • The borrower need satisfactory payment history with Bankruptcy Trustee

Contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. Or email us at The Team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

This BLOG On VA Streamline Refinance Mortgage Guidelines Was PUBLISHED On January 12th, 2019

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