One example is a VA streamline refinance. Also known as an Interest Rate Reduction Refinance Loan (or IRRRL), VA refinances are designed specifically for veterans and active military personnel who wish to refinance an existing VA loan. A VA streamline, like an FHA refinance, is perfect for those who are interested in lowering their mortgage payments without taking out any cash.
What are the benefits of a VA streamline refinance?
- No appraisal or underwriting package is required when applying.
- You’re not required to provide proof of income.
- The HUD doesn’t verify credit scores, though some circumstances may require the applicant to have a minimum credit score.
- You’re able to take advantage of lower interest rates.
- Lender credit is allowed to cover your closing costs.
Other things to consider concerning VA refinances:
- You must be current on your mortgage and have no more than one 30-day late payment within the past year.
- You cannot receive any cash from the refinance.
- You must have previously used your VA loan eligibility on the property you’re refinancing.
- If you’re refinancing from an existing VA ARM loan to a fixed-rate loan, your interest rate may increase.
- A reduced funding fee will be applied if you decide to refinance.
If you’ve never considered a VA loan or an IRRRL for yourself or a loved one who’s served our country, now’s the time to get the ball rolling. After all, it’s the least we can do to take care of those who have taken care of us. This has just been a primer on the options available to veterans. Our site is full of tools to help you in deciding how to refinance and lower your monthly mortgage payment. We’re here to make the process as easy as possible. Contact us and get started today!