VA still offers a great way for borrowers who have VA loans to drop the interest rate on their home loan without much hassle. This is called the VA IRRRL Loan, also known as the VA Streamline refinance.
There have been some changes to this loan in many states because of falling home values. Traditionally, the VA streamline refinance loan has not required the borrower to have an appraisal or credit report. However in most states, a VA borrower needs to have an appraisal and a minimum credit score. Keep in mind, the lender is only going to look at your credit scores, your debt obligations will not have to be counted in qualification. And in many cases, the lender will not do a full appraisal; they will do an in house appraisal desk review. And you can also go up to 100% of the appraised value of your home with your streamline refinance.
One fantastic thing that remains the same about the VA streamline is the VA borrower does not need to supply any information about their current employment and they do not need to supply any documentation regarding their job or income. And there are no qualifying debt-to-income ratios. This cuts down significantly on the paperwork required and time in processing the loan. Additionally, if you’ve moved out of your house with a VA loan on it and rented it, you can still enjoy the great terms and rates of a VA loan with a streamline refinance. This is a remarkable benefit, as it is very difficult to get financing on investment property these days (other than VA streamline refinances).
Here is a summary of the excellent benefits of the VA streamline refinance:
- NO job or income documentation required
- Can go up to 100% of home value on new loan
- Can roll all closing costs into the new loan
- You can do a streamline refinance on a home that you no longer occupy
- Take advantage of today’s record low 30 year fixed interest rates and lower your payment for the next 30 years!
Remember, to complete a VA streamline refinance you have to have a VA loan on the property. However VA eligible borrowers can also refinance from a non VA loan to a VA loan and go all the way to 100% of the property value with a standard VA refinance loan.
So take advantage of today’s record low interest rates that are being held artificially low by the Government to stimulate the economy. It will not last forever as many economists believe rates will rise once the U.S. Government curtails its program of buying billions in mortgage backed securities to keep rates down.
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a VA refinance loan or VA purchase loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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