New Improved Mortgage VA Loan Streamline Refinance (IRRRL)
The VA Streamline Refinance is also known as the Interest Rate Reduction Refinance Loan (IRRRL). The IRRRL allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying.
The Streamline loan is extremely popular because of its ease of use: once you have already been approved for your initial VA purchase loan, it is relatively simple to lower your interest rate and experience considerable savings. In most cases, these loans can be closed in as little as (3) weeks.
VA loan closing costs can be rolled into the cost of the loan, allowing veterans to refinance with no out-of-pocket expenses, skip up to (2) mortgage payments, and get a full escrow refund.
- Benefits of the program
- 550 minimum FICO
- No out-of-pocket expenses
- Skip up to (2) mortgage payments
- Get a full escrow refund
- Chapter 13 – acceptable if subject property is not currently included in the bankruptcy
- Chapter 7 bankruptcy is allowed if discharged prior to loan application
- Streamline refinance a primary residence, 2nd home, or investment property
The VA IRRRL program is one of the most beneficial refinance programs offered to Veterans and Military service members today, including some of the most competitive rates. READ MORE HERE OR CALL US TODAY Call (404) 238-7888
Why a VA Mortgage Might Be Right For You
The three core advantages of taking a VA Loan is that it’s specifically tailored to meet the needs of veterans, current service members and military families with flexible terms. These Government backed loans make it possible for veterans to get some of the best financing available for purchasing a new home or refinancing an existing loan.
The three main areas that benefit Veterans the most are:
- No Down Payment Required
- No Monthly Mortgage Insurance
- Competitive Interest Rates
Saving for a down payment can be extremely difficult for anyone, so not having a down payment requirement makes it easier to get into a new home.
Mortgage insurance can add 5-10% to the total cost of your mortgage payment when you put down less than 20% This however does not apply for VA Home Loans since the program allows for 100% of the loan to be financed. By avoiding mortgage insurance you can save hundreds per month on your mortgage payment.
Interest rates for VA loans are extremely competitive as compared with traditional loans. Paying a higher interest rate on your loan can make a big difference in how quickly you pay down your mortgage.
What is a VA Home Loan?
The VA helps active service members, veterans, and eligible surviving spouses to become homeowners. As part of their mission to serve you, they provide a home loan guaranty benefit and other housing related programs to help you purchase a new home. VA home loans are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Which allows you to buy a home at a competitive interest rate without a down payment required or private mortgage insurance.
Who is eligible for a VA Home Loan?
The length of your service commitment and/or duty status may determine your eligibility for specific VA benefits; this is discussed in our VA Home Loan ebook in detail.
For a step by step guide you can grab the ebook “Simple Steps To a VA Loan” with a Social Share below.
VA-guaranteed loans are available for your new primary residence home purchase. To be eligible, you must have a good credit score, sufficient income, a valid Certificate of Eligibility (COE), and meet certain service requirements.
How to Apply?
VA loans are obtained through an authorized VA lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through e benefits, by mail, or much easier through your lender.
What is a Certificate Of Eligibility?
Simply put, the certificate of eligibility or COE is issued to a veteran who has been discharged under favorable conditions and is used to prove eligibility. Before applying for the VA home loan you must have a suitable credit score, sufficient income, and a valid Certificate of Eligibility to be eligible for a VA-guaranteed loan. Ask your licensed VA mortgage adviser for more details.
VA Loan Ready Checklist
When you set your phone meeting with your VA mortgage advisor, be prepared. Generally speaking, here are the documents you want handy when you have your consultation.
- Pay stubs for the last 30 days or most recent leave and earning statement
- W2s for the last two years for all borrowers and all employers
- Most recent bank statement (all pages)
- Purchase contract (If executed)
- Deposit check for $400 for the VA appraiser. (Note: These fees maybe higher so always check with your Mortgage adviser)
- Certificate of Eligibility (Your Lender can help obtain this on your behalf or through e benefits
- Discharged or retired veterans need to provide a copy of DD214. Veterans still serving should provide proof of current service or current re-enlistment paperwork.
- Disabled veterans may need to provide a VA disability award letter.
- If you pay or receive child support, supply divorce decree and proof of timely payments.
- Be sure to ask your VA mortgage adviser for the specific documents needed for your unique mortgage situation.
Once your VA mortgage advisor has the proper information in hand and you have completed the application process you will receive a very important document.
This letter is a must before you contact a Realtor or start your home search and in all cases is required before you make an offer on a home.