VA Streamline Refinance Loan Information
The VA streamline refinance loan also known as the "Interest Rate Reduction Loan" is a refinance VA mortgage program that allows veterans and active duty military personnel who currently have a VA loan to refinance to a lower interest rate without having to re-qualify. This means:
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No credit qualifying, however, the existing mortgage must be current and there can be no more than one 30 day late mortgage payment within the last 12 months
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No Appraisal is Required
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Employment is not Verified
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Income Documentation is not Required
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Debt Ratios are not Calculated
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No Face to Face Application Required
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All closing cost and pre-paids can be included in the loan amount so there are no out of pocket expenses.
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You can add up to $6000 to the loan amount for energy efficient improvements to your home
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You can get your existing escrow account refunded directly to you
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Skip up to 2 mortgage payments
Restrictions:
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The VA charges a .5 percent funding fee to guarantee the loan. This funding fee is financed in with the loan amount. If you have a VA rated disability you may be exempt from this fee.
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Cash out is not allowed on the VA streamline refinance program. If you need cash-out for debt consolidation or other purposes or wish to combine a 1st and 2nd mortgage then you should apply for the VA Cash-out Refinance Loan.
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The loan being refinanced must be current and there should be no more than one 30+ day late payment within the past 12 months.
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Existing 2nd mortgages cannot be included in the refinance and must subordinate.
If you are eligible for a VA home loan consider the following:
Fact: With a VA home loan you can buy a new home for up to $417,000 with no down-payment!
Fact: With a VA loan the seller is allowed to pay all of your closing cost.
What do these VA loan facts mean? If you are a veteran you can buy a new home for up to $417,000 without having to pay a down-payment and little or no closing cost! So what are you waiting for?
