VA IRRRL streamline refinances

When you have an existing VA mortgage, you may be able to refinance it using the IRRRL program which is also called "streamline refinancing." This type of refinance allows you to get a new VA loan with less paperwork and faster closing.

VA IRRRL streamline refinancing requirements are often easier to meet than those for conventional mortgage refinancing, which is why IRRRLs are sometimes considered "simpler" refinances. Current eligibility requirements include:

• Get a financial benefit to refinancing

  Department of Veterans Affairs guidelines require you receive a net tangible benefit (NTB) from VA streamline refinancing. This requirement can be met with a lower interest rate, a lower monthly payment, or switching from an adjustable rate to a fixed-rate mortgage. For many loans, your interest rate must drop by at least one-half percentage point to qualify.

• Have a VA loan

  You can only use streamline refinancing to replace an existing VA loan with a new VA loan.

• Have the VA loan for six months

  This requirement is often called "seasoning." VA rules state the due date of the first monthly payment of the VA loan you are refinancing must be 210 days or more prior to the closing date of your new loan refinance. You also need to have made six consecutive monthly payments on the VA loan you are refinancing.

• Be up-to-date on your monthly payments

  You need to be current on your VA mortgage payments to be eligible for streamline refinancing.

• Meet the minimum credit score requirements

  VA IRRRLs have easier credit qualification guidelines compared to other mortgage refinances. Freedom Mortgage is able to work with veterans and service members who have lower credit scores.

• Take no cash from your home equity

  You can’t get cash from your home’s equity with a VA streamline refinance. If you want cash out, you will need to choose a VA cash out refinance loan.

• Certify you’ve lived in the house

  You don’t need to currently live in the home you are refinancing with the IRRRL program according to current VA rules. You just need to certify you lived in the house in the past.

• Pay the funding fee

  If you are approved for streamline refinancing of your VA loan, you will need to pay a funding fee equal to 0.5% of the principal loan amount. Some disabled veterans and surviving spouses are exempt from paying the funding fee.

• Pay closing costs

  If you are approved for streamline refinancing of your VA loan, you will likely need to pay closing costs. These costs can run between 1% and 3% of the loan amount according to the Mortgage Reports website.

   

  In many cases, you can qualify for a VA streamline refinance without a home appraisal or income verification. You don’t need a new Certificate of Eligibility. Lenders may ask for a copy of the certificate you used when you bought your home, however. Lenders can often get an electronic copy through the VA, too.

   

  Just like with any home loan refinance, you’ll need to meet Freedom Mortgage’s credit, income, and financial requirements to get your VA IRRRL refinance approved with us.