VA loans are loans ensured by the US federal government designed to help active military personnel and veterans finance the purchase of their homes. Many homeowners who have VA loans can qualify for the VA Streamline Refinance program, which can be utilized to take cash out of their home equity.
The VA Interest Rate Reduction Refinance Loan (IRRRL), is often referred to as a VA Streamline Refinance. This program is available to homeowners who currently hold a VA loan and want to lower their interest rates. This program gives homeowners the chance to lower their mortgage payments, or to change from an ARM to a fixed-rate mortgage.
In order to receive a VA Streamline Refinance loan, you will need to have an existing VA on your home in because your new loan will be based upon your entitlement. Another condition is that your new interest rate must be lower than your old one, unless you are planning to change from a variable rate to a fixed rate. There are very few things needed for a borrower to qualify for a VA loan. The following include the qualifying guidelines created by the VA IRRRL program:
The VA requires a funding fee of .5% for VA IRRRL loans. This is the only fee that the VA charges and it can be financed by the loan. Some homeowners find it easier to complete a VA refinance using their savings.
You are not limited to using your original lender to refinance your VA loan. Any VA-approved lender can refinance your mortgage, making it easier to shop around for a better deal. As before mentioned, the only cost required by the VA is the funding fee in addition to any closing costs. If you are currently paying 1% more on your mortgage than current rates, we can help you save money.