Happy Veterans Day! Today we honor those military men and women who have served and sacrificed everything to defend our country. To those of you who have served, and to those family members who have lost loved ones, we thank you. Since we’re thinking a lot about our veterans today, we thought we’d take some time to talk about something that affects them directly. Most people aren’t aware that certain home loan programs have been created to take care of our veterans. 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.