One of the best options for refinancing a home loan is the FHA streamline loan refinance. But did you know that the Veteran’s Administration also offers a streamline home refinance? This loan allows veterans who already have a VA home loan to quickly and easily refinance to a lower rate.
The VA streamline loan, also known as the VA IRRRL (Interest Rate Reduction Refinancing Loan) requires much less paperwork than a traditional home refinance. Here are some of the requirements and benefits of the VA streamline loan.
Your current home loan must be a VA loan and it must be current.
The VA and the VA streamline loan does not require a home appraisal or income documentation, although many lenders are requiring appraisals.
In many cases the veteran can defer up to 2 monthly mortgage payments. This means you can use that money to pay off other bills.
The VA does not require a minimum credit score for the VA streamline loan, but most VA lenders will require a credit score of at least 620.
The VA streamline loan requires that you are not delinquent on making your mortgage payments. In most cases the veteran cannot have a 30 day late payment in the last 12 months.
There are no out-of-pocket costs with the VA streamline loan. All fees and closing costs can be financed into the new mortgage.
There is no cash out at closing for this type of refinance.
One of the great things about the VA streamline loan is that it allows the veteran to refinance to a lower interest rate, change their loan terms and lower their payment without having to re-qualify. See if you qualify today.
