The VA Streamline Refinance Program is also known as an IRRRL (pronounced "Earl"). It stands for Interest Rate Reduction Refinancing Loan. As the name implies, it is a refinance loan used to reduce your interest rate on your current VA mortgage. It can also be used to refinance from an Adjustable Rate Mortgage (ARM) to a Fixed Rate Mortgage, regardless of the interest rate. This program is specifically for veterans refinancing from an existing VA loan to a new VA loan, not from or to a conventional program.

The appeal of this refinance program is as follows:

• The appraisal is usually the only out-of-pocket expense
• A full credit report is NOT required (min. 640 score needed)
• Income information is NOT required
• Asset information is NOT required
• Debt information is NOT required (except current mortgage)
  
• A VA Certificate of Eligibility is NOT required
• Owner occupancy is NOT required

However, the following must be true and documented:

• Proof your current loan is a VA or Texas Vet VA loan
• NO past due balances on your current VA mortgage
• NO late mortgage payments for the last 12 months
• NO cash back at closing

An IRRRL may be done by rolling in most of the costs into your new loan; however, the cost of the appraisal is typically an out-of-pocket expense.  The only cost to the VA is the funding fee of 0.50%, which may be waived for disabled vets and which may be paid in cash or included in the new loan amount.

If you would like to get pre-qualified for this program, click here and follow the instructions.  If you simply have questions, call Chad.