VA Streamline Refinance
The Interest Rate Reduction Refinance Loan (“IRRRL”), also known as the VA Streamline Loan or the VA-to-VA loan. The purpose of the VA Streamline Loan or IRRRL is to allow borrowers to lower their interest rate in a fast and easy way. Many approved VA lenders will allow VA Streamline Refinances with no credit check and no appraisal, no out of pocket expenses. In order to qualify for a VA Streamline Refinance you must meet the following eligibility requirements:
- Be Current on your mortgage payment with no more than one 30 day late within the last 12 months.
- The new monthly payment must be lower than your original VA mortgage loan payment.
- No cash out is allowed, only the lowering of monthly payments.
- You must have previously used your VA Loan eligibility on the property you intend to refinance. (You may see this referred to as a VA to VA refinance.)
The VA does not require an appraisal, or credit information or underwriting, however, VA lenders may have overlays which will require the borrower to provide some or all of this information.
If you have a VA loan and have not looked into a VA Streamline Refinance you need to do it today.