Easy Access to Lower VA Loan Rates
Thousands of veterans per year use the VA home loan program to buy because it requires no down payment, no mortgage insurance, and lower upfront costs. But a VA home loan comes with another important benefit: easy refinancing.
The VA streamline refinance allows VA mortgage holders to lower their rate and payment without paystubs, bank statements, or even an appraisal. The program removes virtually every barrier to obtaining a lower VA rate.
VA Streamline Refinance Rates
Now in its seventieth year, the VA home loan program continues to prove its value to today’s homeowners. VA home loan activity increased by 80% in 2009 and by another 50% in 2012. In 2013, more than 380,000 homeowners received a VA streamline loan.
Low VA mortgage rates helped increase VA streamline popularity. Veterans who purchased homes in the 1990s and early 2000s suddenly had access to mortgage rates that were about half what they had been paying.
But seasoned homeowners are not the only ones who benefit from the VA streamline. Home buyers from only the last few years may be eligible if at least one of the following requirements are met:
- The VA streamline reduces the interest rate
- The VA streamline converts the loan from an adjustable rate to a fixed rate
- The new loan has a shorter term
- Energy-efficient improvements are included in the VA streamline
This flexible program has helped veterans across the country reduce payments and free up cash for other expenses. Still, some VA mortgage holders have not yet applied for a VA streamline, assuming they are difficult to close. On the contrary, the VA Streamline is the easiest refinance in today’s market, requiring almost zero documentation to qualify.
VA Streamline (IRRRL) Loan Reduced Documentation Guidelines
A VA streamline is also called an Interest Rate Reduction Refinancing Loan, or IRRRL, because it lowers the rate and makes the home more affordable. This is what most refinances do, but the VA streamline is different from most other loan types. Homeowners can reduce their rate with very little documentation.
- A VA streamline requires no appraisal, so underwater homes are eligible.
- A VA streamline does not require paystubs, W2s, or tax returns.
- A VA streamline does not require bank statements.
In addition, more borrowers qualify for this refinance because:
- Closing costs can be included in the IRRRL, eliminating out-of-pocket expenses.
- Borrowers with lower credit scores often qualify for an IRRRL.
Refinance borrowers who have hit roadblocks in the past often receive a “yes” from the VA streamline lender. Very limited documentation means a much easier loan approval process.
Is there a Catch?
The VA streamline refinance appears too good to be true to many applicants. Home owners wonder why lenders would issue a loan without all the traditional documentation.
The reason is that the borrower already went through the qualification process when they purchased the home or received the previous VA loan. At that time, the borrower proves income, credit standing, and VA home loan eligibility. The Veterans Administration, the agency that backs VA streamline loans, assumes the borrower is still qualified and writes qualification standards accordingly.
The lender receives the same government guarantee for an IRRRL and therefore can lend at very low rates, even without typical refinance documentation. This refinance is real and available now at low rates.
Check Today’s VA Rates
There are few barriers to a lower rate and payment with a VA streamline. This loan requires just a small funding fee of 0.50% that can be included in the new loan. Veterans are not subject to any additional subsequent use fees, nor do they use additional VA home loan entitlement to take advantage of an IRRRL.
No certificate of eligibility is required and the process is quick. Get access to today’s low VA rates and apply for this unique refinance program.