VA Streamline Refinance Loan

VA Streamline Refinance

"VA IRRRL" is an acronym that means VA Interest Rate Reduction Refinancing Loan. You may see VA IRRRL also referred to as a "Streamline Refinance", which refers to the amount of reduced documentation that the lender needs to perform to gain an approval. The purpose of a VA Streamline Refinance is to lower the interest rate on a current VA Loan with minumum hassle and paperwork for the veteran.

VA IRRRL "Streamline Refinance" requirements include:

The current loan must already be a VA Home Loan.

Payments on the current loan must be current and not late.

The Streamline Refinance may result in a lower interest rate and payment only. No cash may be taken out of the home's equity.

How much home equity can be refinance by a Streamline?
The limit loan amount for a Streamline VA Refinance Loan is:

Loan Amount Limit
The largest allowed loan amount VA Loans can vary by county. The largest maximum VA Loan presently is $1,094,625. The smallest VA Mortgage limit in any county is $417,000. You can research VA loan limits in your county at http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf.

Finance Limit
The VA finance limit for a VA Loan Rate Term Refinance or VA Streamline Refinance isl be 90% of the lower of the appraised value of the home or its selling price. The maximum finance limit for a VA Cash-Out Refinance is also 90%.

VA Refinance Programs

VA Rate/Term Refinance
The VA Rate/Term Refinance is for veterans who have a Conventional, FHA or Subprime mortgage and wish to refinance into a VA Mortgage. This program helps veterans who wish to have a stable, VA insured fixed rate mortgage.

Cash-Out Refinance
A VA Cash Out Refinance is perfect for the veteran who wants to access the equity that they have built up in their home. This program is beneficial to veteran whose property has increased in value since it was purchased.

VA Streamline Refinance
The VA Streamline Home Loan Program or "IRRRL" is designed to lower the interest rate on a current VA Mortgage. A VA Streamline Refinance can be performed quickly and easily.

VA Refinance Questions & Answers

What are the guidelines for a VA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 90% of the current appraised value. If the borrower does not take cash out then the maximum financing will be 100% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.

Why should I consider refinancing into a VA Mortgage?
VA mortgages do not come with mortgage insurance, prepayment penalties, teaser rates or balloon payments. It has never been easier to refinance through your VA loan benefit.