IRRRL Information
The VA streamline program is also known as the VA IRRRL program - which stands for Interest Rate Reduction Refinancing Loan. Learn more about the VA streamline and other VA loan options from the nation's #1 VA purchase lender, VA Mortgage Center.com now!
VA Streamline Frequently Asked Questions
What are the requirements for a VA streamline?
The three main requirements for the VA streamline program are:
- You can't have any more-than-30-day late payments in the last 12 months
- Your new loan must have a lower interest rate
- Your new loan must have a lower principal and interest payment
Is there anything else I need to know about refinancing a VA mortgage?
As with all loans, there are a few things that you can and can't do with a VA Streamline. If you currently have a 15 year fixed VA or FHA loan, you can refinance to a 15 or a 30 year fixed. You can't take money out through a streamline refinance, and you can't refinance to a higher rate than you currently have.
How long does a streamline refinance typically take?
Typically, it will take between 20 and 30 days to complete - but it depends on a number of factors. Be sure to ask your loan officer how long it should take.
Do I have to use my current lender if I want to do a VA Streamline?
No. If you want a new lender you can choose from any mortgage lender on the VA approved lender's list. Make sure that you shop around for your VA streamline refinance. By looking at several lenders you will get more offers and you can choose the best loan terms for you and your family. Be careful of lenders that try to deceive you into thinking they are the only lender that can finance a VA streamline refinance. The VA has a long list of approved lenders and you should shop around.
What should I look for in a lender?
There is no shortage of brokers/banks that offer a VA streamline refinance. But there is a wide variety in the quality. You should make sure there are very low bank costs and no origination fees. If you are asked to pay an origination fee, you can do much better looking elsewhere.
Does the VA have any requirements for me to get an IRRRL?
It must be a VA to VA refinancing. You must be refinancing an existing VA backed loan into a new VA backed loan in order to use this program. You cannot receive any cash at closing. The loan amount can only increase slightly as a result of fees and closing costs being financed into the mortgage. However, with a low cost lender, there should be no trouble making sure there is very little out of pocket costs.
Do I have to go through a credit check and appraisal process again when refinancing?
The VA does not require this, because they have already approved you for the loan when you bought the house. However, lenders usually do require a credit check to make sure there are no new judgments or mortgage delinquencies which could disqualify you from being eligbile for a VA streamline refinance.
When is my rate actually locked?
Your rate is considered locked when the loan officer has personally verified your mortgage information and intent to refinance. Once your rate is officially locked, you have a limited number of days to provide the required paper work and information before the lock is lost.
During the rate lock period your interest rate can not go up. However, if interest rates drop during the application period we will make every effort to refinance your VA mortgage at the lower rate.
Why aren't variable rates show for VA loans?
Because only fixed rate loans are available with the VA IRRRL streamline program.
Learn more about VA Home Loans from the nation's #1 VA purchase lender, VA Mortgage Center.com.
VA Streamline Benefits
$0 Down
VA loans allow you to finance 100% of the home's value and purchase with $0 down. FHA programs require 3.5% down and other programs require as much as 20% down.
Lower Monthly Payments
VA loans don't require mortgage insurance which saves you money each month. You will also get generally lower rates with a VA Loan.
Easier to Qualify
As many as 80% of veterans and active-duty military members could not have qualified for a conventional loan.
Fixed Rates
Most Veterans choose going with a 30 year fixed rate so they know that their rate won't adjust to the point where they can no longer afford their home.