VA STREAMLINE REFINANCE
An "Interest Rate Reduction Refinance Loan" (IRRRL) or VA Streamline Refinance allows Veterans to refinance their current mortgage interest rate to a lower rate than they are currently paying. This program is only available to veterans who are refinancing their original VA mortgage in which they utilized their original eligibility.
VA Streamline Loan Guidelines:
- There is no cash out on an IRRRL loan
- The VA charges a 1/2 percent funding fee to guarantee the IRRRL Loan
- The VA loan being refinanced must be current and have a perfect pay history for the last 12 months
- No assumptions are allows
- Second mortgages can not be included and must be subordinated
Like the FHA streamline refinance, the VA streamline loan can be done with "no out of pocket money" by including all closing 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.
HOME LOST VALUE?
You may have heard of HARP, the Home Affordable Refinance Program. HARP is only available if you have a Fannie Mae or Freddie Mac loan. and it allows you to refinance even if your home is underwater. The VA streamline refinance potentially has a no appraisal option. So if your home has lost value, you may still refinance to today's low mortgage rates too!