VA Streamline Refinance

By
Mortgage and Lending with Academy Mortgage Corporation

 

This is a terrific way to show your VA clients that you are sincerely looking after their best interests.

The Interest Rate Reduction Refinance Loan aka IRRRL is a low cost way to help your VA clients refinance their home with ease and save money on their monthly mortgage. This week par Rates on the VA IRRRL were 5.5%. At 6% - 6.25% all closing costs can be paid through the Bank Rebate if you have a willing/generous mortgage originator (if not call me):

IRRRL Facts for Veterans*

"IRRRL stands for Interest Rate Reduction Refinancing Loan.  You may see it referred to as a "Streamline" or a "VA to VA."  Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate.  When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

No appraisal or credit underwriting package is required by VA.  You should be aware, however, that lenders may require an appraisal and credit report anyway.

A certificate of eligibility is not required.  Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.  (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage).

An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance.  It must be a VA to VA refinance, and it will reuse the entitlement you originally used.  You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan.  If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

The occupancy requirement for an IRRRL is different from other VA loans.  When you originally got your VA loan, you certified that you occupied or intended to occupy the home.  For an IRRRL you need only certify that you previously occupied it.

The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points.  You may also add up to $6,000 of energy efficiency improvements into the loan."

*Courtesy of http://www.va.gov/

 

 

 

VA Streamline Check List

Forms to be signed/filled out prior to submission

-URLA (1003)

-No Income, asset or liabilities listed (current lien holder and

account number listed)

-VA addendum to the URLA

-Nearest living relative form

-Certificate of Eligibility Form 26-1880

-VA Benefit-Related Indebtedness Form 26-8937

-Federal Collection Policy Notice Form 26-0503

-Borrower's authorization form for us to order credit supplement

-IRRRL loan worksheet

 For a limited time we can waive the .5% Funding Fee and all Non Allowables.

 

Show your VA homeowner clients that you are looking out for them and tell them about this program.

 

Good Luck!!!

 

Comments (3)

Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Good Information, Jay.  Thanks!

Jan 10, 2008 11:20 PM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL

I only wish that there were more VA borrowers in my neck of the woods!

:-)

Jan 11, 2008 02:02 AM
Anonymous
Jaby
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To whom it may concern:

Written:   June 9, 2010

Since April 7, 2010, we have been trying to refinance our VA loan for a better rate and to utilize the Energy Efficient Loan for energy efficient windows for the amount up to $6000.00.  Our home was built in 1974 and has most of the original windows.  Anyone driving by our home can clearly see that our home needs new windows.  We have submitted and signed off on all the necessary paperwork as stated by the loan officer at that time, and gave them $500.00 to lock in the percentage rate. Please note:  Part of the paperwork that was required was a detailed statement of the cost of the windows from the window company that will be doing the work.  Then the bank is to pay the window company directly.

Today, June 9, 2010 our lender, Wells Fargo, is just now telling us, (which is now a month after we locked in our interest rate), that we need to hire an “Energy Rater “to determine if the new windows will be more energy efficient than the old windows in order to qualify for this MEE loan.  This is the VERY first time we have heard anything like this.  There was more than an adequate time frame, for them to tell us that we needed this information.  We gave the lender $500.00 dollars to hold and even waited a week and a half to two weeks for the interest rate to drop before we called him to lock in the percentage rate.  We were told that we should close within a few days.  That did not happen.  Their excuse then was that they have had a lot of loans lately due to everyone refinancing.  We understood that and we were not upset.  But we were assured that we would close soon and probably before our next payment was due.   We have had 3 different closing dates which we were still not informed about the additional paperwork for an “Energy Rater” to evaluate our home.  Which by the way will be an additional cost to us, out of pocket, to the tune of $300.00.  The loan made it through the first underwriter.  The second underwriter was the one that stopped the loan and said that we needed this paperwork.  

On top of that, we delayed  making our house payment thinking that we would not have to make this month’s payment.  With only a day left before our due date we are informed of this additional paperwork.  We were trying to squeak out 2 months of not making a payment due to our father’s illness and having to travel to help with his needs.  

If I had not been on top of them, calling and asking if we were still on to  close the days they stated, we would have probably not paid our loan by the due date, trusting their words.   Our loan officer, went on vacation so we were passed to someone else.  The new loan officer called me last week and said that she needed a statement from the window company telling the bank how much we would save by purchasing these new windows.  She also said that she would call the window company but she also needed a copy of our heating and cooling bill (electric and gas bill).  She then calls back, aday or so later, and said that she could call and get them from the utility companies that I would not have to worry about getting the bills to her.  A couple of days passed and I called again left  a message to have them call me back. (I was getting nervous because I knew our loan due date, June 1oth, was approaching.    A few days later (which was today) my husband notices an email from our original loan officer, back from his vacation, stating that we now need an evaluation from an “Energy Rater” before they can go any further with the loan.  This was the first time that we had heard of such a thing.  This also puts us over the loan process expiration time limit.  

Wells Fargo is now sorry for their error and is offering to pay for the continuation of the loan, which IS NOT our fault anyway.  

We are also trying to get these windows in, in time for the Government tax rebate.  And it takes 6-8 weeks alone just for the window company to custom make the windows.  If they keep kicking this ball down the curb we are going to miss the dead line.  In addition to,  we have paid for our air line tickets that we may end up having to eat because this loan process is taking far too long.  I have specifically planned things out which  I have given them ample time.


Because they did not disclose to us in the beginning, before we signed and locked in our interest rate  that we needed an evaluation from an “Energy Rater”, we would now like to go to another lender.     However, we would have to forfeit our $500.00. At Wells Fargo.  We don’t feel secure with them.   I was wondering if they had done this on purpose?  I am not sure I would even know what that purpose would be other than maybe they did not want us to skip 2 months.  I feel it was more negligence as I was the one to ask about the Energy Efficient Loan for the VA refinancing and the loan officer did not know anything about such a critter.  I don’t feel like this is at all fair.  Also, the interest rate is now 1/4% lower than when we locked in the price a month ago.   

If the shoe was on the other foot, I would be paying them a substantial fee of some sort for my mistake.  Why should the bank be allowed to get by with this or can they?  What can I do?  What are MY rights? Can I file a complaint?  How do I go about it?

Thank you for your time.

Respectfully,

JV


The bank also made another small error but I caught it just in time even though the underwriter was working on our loan at that time.  They put the wrong figure down for the total cost of the windows.




Here is a timeline of the documentation that I have:

4-7-10  Approximate Loan Cost Illustration

4-15-10 Signed VA”s Request of Elegibilty

4-24-10 Date Loan was Generated

4-24-10 Truth n Lending paperwork

5-11-10 In Loan Processing letter

 

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Jun 10, 2010 05:39 PM
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