VA Streamline Refinance
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:
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
No Appraisal is required
Employment is not verified
Income Documentation is not required
Debt Ratios are not calculated
No Face to Face Application Required
All closing cost and pre-paids can be included in the loan amount so there are no out of pocket expenses
You can add up to $6000 to the loan amount for energy efficient improvements to your home
You can get your existing escrow account refunded directly to you
Skip up to 2 mortgage payments
Restrictions:
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.
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. The loan being refinanced must be current and there should be no more than one 30+ day late payment within the past 12 months.
Existing 2nd mortgages cannot be included in the refinance and must subordinate.
This means:
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
No Appraisal is required
Employment is not verified
Income Documentation is not required
Debt Ratios are not calculated
No Face to Face Application Required
All closing cost and pre-paids can be included in the loan amount so there are no out of pocket expenses
You can add up to $6000 to the loan amount for energy efficient improvements to your home
You can get your existing escrow account refunded directly to you
Skip up to 2 mortgage payments
Restrictions:
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.
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. The loan being refinanced must be current and there should be no more than one 30+ day late payment within the past 12 months.
Existing 2nd mortgages cannot be included in the refinance and must subordinate.