VA Streamline Refinancing | VA Streamline Refinance Guidelines
- VA streamline refinancing, also known as a VA IRRRL refinance, is available to homeowners with a VA loan.
- When it comes to VA streamline refinance guidelines, they are one of the easiest refinance options for existing VA loan borrowers.
- The VA streamline refinance has limited documentation, employment, credit score verification, and no appraisal on the home.
VA Streamline Refinance Guidelines
- No minimum credit score required on a VA IRRRL refinance.
- No appraisal required.
- Primary and non-owner occupied properties allowed.
- When streamline refinancing, the borrower must be current for the month due.
- Manufactured homes permanently affixed to the foundation meetingVA streamline refinance guidelines are eligible.
- Incidental cash back may not exceed $500.
- VA cash out options are available up to 100% loan-to-value.
Some lenders have tougher guidelines called an VA overlay, which make it harder to qualify for. One of the most common VA lender overlays is requiring a minimum credit score, such as 640, 620, 600 FICO credit score.
VA Streamline Refinancing Benefits
- Possible to bring no money to the closing table.
- Refund of current escrow account.
- Defer up to two mortgage payments.
- VA interests rates are very competitive and can be more competitive than other types of loans and easier to qualify for.
- Minimal paperwork and easy refinance process.
- Can result in an a lower payment or shorter term.
Net Tangible Benefit
- Borrowers interest rate must be reduced by .5% and the recoupment closing costs within 36 months.
- Or reduce remaining loan term by 6+ month with a minimum of .125% interest rate reduction.
- Or covert from an ARM to a fixed rate when doing a VA streamline refinance.
VA IRRRL Refinance Interest Rates
- Pricing varies depending on the mortgage company.
- Call 844-953-0100 or apply online for living pricing and connect with a Mortgage Loan Originator to talk about VA IRRRL refinance rates.
- Pricing is not final until the loan is locked and the funds are disbursed to pay off the existing VA loan.
- For live pricing, rates will depend on pricing adjustments, which could include:
- Loan amount
- Occupancy type
- Number of units
- Property state
- Credit score
- Or other pricing adjustments.
Some lenders may have higher origination fees, processing, underwriting, or other fees. VA IRRRL refinance rates vary lender to lender.
Bankruptcy and VA IRRRL Refinance
- Chapter 7 Bankruptcy must be discharged.
- Chapter 13 Bankruptcy is permitted as long as there is a satisfactory payment history with the trustee and court approval.