What Is A VA Streamline?
First it is important to understand the VA Home Loan. This loan program was designed specifically for military active duty, veterans, reservists, national guard and the families to help them buy a home. These loans are issued by approved VA lenders and are guaranteed by the government.
THe VA Streamline programs is a common loan backed by the VA. It is also known as an Interest Rate Reduction Refinance Loan or to make it short and sweet, IRRRL. The IRRRL program is designed to help those who already have a loan and want to refinance and reduce their interest rate.
How Does The VA Loan Work?
A VA loan is for all military active duty, veterans, reservists, national guard and the families of the above. It helps those people who have a qualifying credit score and income to help them purchase a home without a down payment. The VA loan is very popular because it has flexible requirements, no private mortgage insurance aka PMI and competitive interest rates.
Qualification To Receive A VA Loan:
In order to qualify for a VA Home loan, the veteran must have served at least 181 days during peacetime, 90 during war time or 6 years in the reserve or national guard. If you are a spouse of a service member who was KIA or in the line of duty, you may also qualify for a VA home loan. Most active duty and honorably discharged service members qualify for a VA home Loan or the IRRRL program.
Now that you understand the VA loans, you can now learn about the VA Streamline loan.
The VA Streamline or IRRRL is designed to help you refinance your current mortgage interest rate to a lower interest rate. It is so easy to use so it makes it a very popular choice for Veterans.
Once you are approved for the VA loan, it is easy to lower your interest rate and save a lot of money. In some instances you can complete the loan within a month.
The closing costs from the VA Refinance Loan can be utilized into the cost of the loan which lets veterans refinance with no down payment and out of pocket expenses.
How to Meet the VA Streamline Requirements:
- You must be up to date on your current mortgage with no more than one 30 day late payment within the past year
- The new monthly payment for the IRRRL must be lower than your monthly payment
- You cannot receive cash from the IRRRL
- You have to have proof that you are occupying the property
- You must have used your VA loan eligibility on the property you intended to refinance
A VA Streamline Refinance are loans which belong to a program designed for veterans. This program is very flexible and lenient with interest rates.