Explore VA Streamline Refinance
VA Streamline Refinance
A streamlined refinance option for eligible veterans with existing VA loans to lower their interest rates.
Best for:
Individuals, Couples, Families
Property type:
Single Family Home
Townhouse
Condo
Multi-Family Home
Townhouse
Condo
Multi-Family Home
Loan Term:
15, 20, 30 Years
Loan Limits:
Varies
Key Benefits
Interest Rate Reduction
Lower your interest rates with a streamlined refinance for VA loan holders.
Lower your interest rates with a streamlined refinance for VA loan holders.
No Income Verification
Streamline the process with minimal documentation and no income verification.
Streamline the process with minimal documentation and no income verification.
Reduced Fees
Benefit from reduced fees and costs associated with the VA streamline refinance.
Benefit from reduced fees and costs associated with the VA streamline refinance.
Financial Savings
Save money with a more cost-effective refinancing solution.
Save money with a more cost-effective refinancing solution.
Commonly asked questions about VA Streamline Refinance
What is a VA Streamline Refinance (IRRRL)?
A VA Streamline Refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), is a refinancing option for eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. It allows veterans to refinance their existing VA loan to obtain a lower interest rate and reduce their monthly mortgage payments.
What are the Eligibility Requirements for VA Streamline Refinance?
To be eligible for VA Streamline Refinance, you must have an existing VA loan, intend to occupy the property as your primary residence, and meet the VA's requirements for creditworthiness. You do not need to undergo a credit check or provide a new Certificate of Eligibility.
Is an Appraisal Required for VA Streamline Refinance?
In most cases, an appraisal is not required for VA Streamline Refinance. The VA generally does not require a new appraisal or credit underwriting package if you meet the program's requirements, making the process faster and more straightforward.
What Documents Do I Need for VA Streamline Refinance Application?
Typically, you'll need your Certificate of Eligibility (COE), proof of your existing VA loan, and evidence of your service history. The specific documents required can vary by lender, so it's best to check with your chosen lender for their documentation requirements.
Can I Include Closing Costs in VA Streamline Refinance?
Yes, you can include closing costs in a VA Streamline Refinance. However, some lenders might offer 'no-cost' or 'low-cost' refinance options where closing costs are minimized or rolled into the loan amount, allowing you to refinance without significant out-of-pocket expenses.
Can I Do a Cash-Out Refinance with VA Streamline Refinance?
No, VA Streamline Refinance does not allow cash-out options. It is specifically designed to reduce the interest rate and monthly payments on existing VA loans without providing cash back to the borrower.
Can I Switch from a Fixed-Rate VA Loan to an Adjustable-Rate VA Loan with Streamline Refinance?
Yes, you can switch from a fixed-rate VA loan to an adjustable-rate VA loan (or vice versa) with VA Streamline Refinance. However, it's essential to understand the implications of changing your loan type and how it might affect your payments.
How Long Does the VA Streamline Refinance Process Take?
VA Streamline Refinance processes are typically faster than traditional refinances due to reduced paperwork and requirements. The process can often be completed in a few weeks, making it a convenient option for eligible veterans and service members.
Can I Qualify for VA Streamline Refinance If My Loan Balance Is Higher Than My Home's Value?
Yes, VA Streamline Refinance does not require a home appraisal or consider the loan-to-value ratio, making it possible for veterans with underwater mortgages to qualify if they meet other program requirements.
Can I Refinance Non-VA Loans with VA Streamline Refinance?
No, VA Streamline Refinance is specifically for homeowners with existing VA loans. If you have a non-VA loan, you would need to explore other refinancing options tailored to conventional or other loan types.
Can I Apply for VA Streamline Refinance If My Loan Is in Default?
No, VA Streamline Refinance requires borrowers to be current on their existing VA loan. If your loan is in default, you would need to address the default and bring your payments up to date before qualifying for the Streamline Refinance program.
What Happens to My Funding Fee with VA Streamline Refinance?
If you previously paid a funding fee on your original VA loan, you will need to pay another funding fee for VA Streamline Refinance. However, the fee is typically lower for IRRRL than for the original VA loan. Veterans receiving VA disability compensation may be exempt from the funding fee.
Can I Use VA Streamline Refinance to Remove Private Mortgage Insurance (PMI)?
VA Streamline Refinance does not require private mortgage insurance (PMI), as it is a benefit exclusive to VA loan holders. If you're switching from a non-VA loan to VA Streamline Refinance, you can avoid PMI, provided you meet VA's eligibility criteria.