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. It is our most popular refinance program.  (If your current loan is not a VA loan and you want to refinance to VA, you will need the VA Cash Out Refinance Program.)

The appeal of this refinance program is as follows:

* The appraisal is usually the only out-of-pocket expense (and is sometimes waived)
* Many lenders can go as low as a minimum 640 credit score
* A full credit report is NOT required (only the mortgage history)
* Income information is NOT usually required (just current employer, if applicable)
* Asset information is NOT usually required
* Debt information is NOT usually required (except current mortgage)
* VA Certificate of Eligibility is NOT required
* Owner occupancy is NOT required

However, the following must be true and documented:

* Current loan is a VA or Texas Vet VA loan
* Current loan balance is at least $50,000 (may vary by lender)
* NO past due balances on your current VA mortgage
* NO late mortgage payments for the last 12 months
* NO cash back at closing

As of July 2010, a full conventional property appraisal may be required on your VA streamline refinance loan. If so, your property must appraise for at least your new loan amount, including the VA funding fee (if applicable) and the cost of the appraisal will be due before the appraisal is ordered.

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 directly 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, which is what most veterans do.

You can read about the refinancing process first or complete this form if you are ready for a refinance analysis to determine what this program can do for you. If you simply have questions, please contact us so that we may further assist you.