VA Streamline Refinance Program
Interest Rate Reduction Refinancing Loan
Since 1980, the VA has offered the Interest Rate Reduction Refinancing Loan (IRRRL) as a way for current VA homeowners to lower their interest rates with little or no out-of-pocket costs. This is only available to veterans who are refinancing their original VA mortgage and utilized their original eligibility.
It’s also called a "Streamline Refinance" or a "VA to VA Loan."
The Basics of a VA Streamline Loan
- No assumptions are allowed.
- The veteran cannot receive any cash back.
- VA does not require an appraisal, any income or employment verifications, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing.
- Any other liens must be subordinated to the VA loan.
- This loan can be done with "no out of pocket money" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
VA Loan News, Guidelines, and Articles
Many assume the VA provides the money for a VA guaranteed loan, but private banks issue the actual VA mortgage—no money comes from the VA unless the buyer defaults and goes into foreclosure.
Examine five basic VA loan repayment options: a traditional fixed payment, growing equity mortgage, graduated payments and two types of adjustable rate VA mortgages.
The Department of Veterans Affairs does guarantee the loan but the VA does not issue them. Knowing that fact makes the rest of the fine details a lot easier to understand.
ADDITIONAL ARTICLES
