When interest rates dip, refinancing activity goes up — and recently we have had a few calls from Veterans who are currently in a VA loan asking about their refinancing options.
If you are currently in a VA loan and you are interested in just lowering your monthly payment, the VA IRRL streamline makes it easier than ever to take advantage of lower interest rates and lower your payment.
The VA streamline program doesn’t require an appraisal and you don’t have to fully qualify for a new loan – much like the FHA streamline program, it is designed to allow VA borrowers to get into a new, lower interest rate without going through a full loan qualification.
The three main criteria for a VA streamline are:
- The new VA loan must be a lower interest rate than the current loan
- The new principal/interest payment must be lower than the current loan
- The last 12 mortgage payments must have been made on time
With a VA streamline:
- No appraisal is required
- No income documentation is needed
- No asset documentation is needed
When qualifying for a VA streamline, the only documents you will need when submitting your file to underwriting are a completed loan application (without the income or asset information), a copy of your DD-214, your current mortgage note and a copy of your current mortgage statement.
The VA streamline program takes about the same amount of time as a regular, full-documentation refinance due to the processing and underwriting times, but it is much easier to qualify for (providing that you meet the 3 criteria) and much less of a hassle to gather the documentation required.
If you are currently in a VA loan and your interest rate is above 6%, it is a good time to see if the VA streamline program can help you lower your mortgage payments and put you in an overall better financial situation.