VA Streamline Refinance Loan

VA Streamline Refinance

IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a "Streamline". The Interest Rate Reduction Refinancing Loan refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction.

The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable rate mortgage into a fixed rate. A Streamline VA Refinance Loan can be performed quickly and easily. VA Streamline fixed mortgages require much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

What are the basic requirements for a VA Streamline Refinance?

The mortgage to be refinanced must already be a VA Home Loan.

The mortgage to be refinanced should be current.

The refinance is to result in a lowering of the borrower's monthly principal and interest payments.

No cash may be taken out on mortgages refinanced using the streamline refinance process.

How much can I refinance?
The maximum amount for a Streamline VA loan is determined by

Maximum Loan Amount
The maximum loan amount allowed for VA refinance Mortgages varies from county to county. The highest maximum VA mortgage right now is $1,094,750. The lowest maximum amount available in any county is $417,000. To see what the limit is in the county in which you're interested, visit the following site http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. This site lists U.S. territories as well as states.

Maximum financing: Depending on the state where the property is located, the maximum VA financing for a VA Streamline Refinance (No Cash-Out) will be 100% of either the appraised value of the home with a new appraisal or the previous loan amount.

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.