Who qualifies for a VA Streamline Refinance Mortgage also referred to as the Interest Rate Reduction Loan (IRRL)?
Financing for eligible VA loan customers whom are service members with a valid DD 214. This may include qualified veterans, reservists, active duty personnel, or eligible family members.
What paperwork is required for a VA Refinance Mortgage when it is streamlined?
Since the streamline refinance (IRRL) usually does not require income debt ratios it regularly does not require documentation of income and assets. The loan also tends to disregard the majority of credit issues. Although, there a very basic credit check to verify mortgage payment history. The streamline does require that the last 12 months of payments have been made on time. There is usually only some basic documents needed. You may need to provide job information, current VA home loan information and license/military ID. There may also be some other minor documents but one of the main benefits of a streamline is the massively reduced paperwork.
Know the NO(s) of a VA Streamline Refinance.
NO full credit checks and NO income verification required if you current have a VA loan and desiring to refinance into a lower rate or change the mortgage’s term. It is recommended that you a general credit score of above 600.
Reduced PMI (Private Mortgage Insurance) when you streamline refinance a VA home loan. There is also only a 0.5 funding fee which is rolled into the loan.
In order to qualify for a VA streamline refinance a loan must have a rate reduction. This means that you can only streamline your VA home loan if you are reducing the interest rate on the current loan. If you desire to take cash out or your rate goes up then you must do a standard VA refinance. Standard VA refinance mortgages will require income and assets to be verified. In addition, you may be required to provide additional documentation.
You may not have to have an appraisal as it is generally not required for a VA streamline refinance.
Once you request you will be contacted by a skilled VA loan consultant.
They can answer questions and tell you the loan options available to meet your needs.
The IRRL or Streamline refinance allows current VA home loans to be refinanced for rate reductions. It may also allow for some cash for approved energy efficiency upgrades.
Who qualifies for a VA Refinance Mortgage?
Do you currently have a home with a VA loan or have a home and own it free and clear but are VA Eligible? Then you maybe able to do a standard VA refinance.
What paperwork is required for a VA Refinance Mortgage ?
The Standard VA refinance requires underwriting guidelines that will review income/debt ratios, credit, assets and the home’s value. The typical documentation will be two months bank statements, two months of pay stubs, full VA appraisal and additional supporting documentation.
There is no established credit score minimums but banks/lenders may add ‘overlays’ (overlays are additional guidelines).
Typically, a VA eligible borrower may refinance and ‘cash out’ to pay off debts, get cash in hand and/or do home remodeling. Loan amounts may go up-
Which VA refinance is right for you? Select a loan type below and discuss all your available options with a VA approved, Federal and State Licensed Lender.