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Phone 888-214-3571
VA IRRRL Program
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Zero out-of-pocket cost
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No Appraisal
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Tax Returns not required*
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W-2s not required*
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Pay Stubs not required*
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You may receive an escrow refund
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VA cashout loans are also available
Having a VA loan affords you the opportunity for a VA Streamline Refinance. The VA Streamline refinance, or IRRRL program, is a VA loan refinance option that has some significant advantages. Unlike traditional Refinances, the Streamline refinance allows applicants to apply for a lower interest rate loan with fewer requirements than a traditional refinance, such as not having to perform an appraisal and not requiring a look at tax returns or paystubs. The program also allows any costs to be rolled into the refinance, allowing for more flexibility in the timing of the refinance. Some of these advantages do come at a cost. Without higher requirements for the refinance, there is a possibility that the refinance may not be the right option for the current situation of an applicant. A refinance can get you a lower interest rate, but the costs may result in you paying more overtime even if your monthly payment is less. An applicant must keep this in mind while looking into the VA Streamline Refinance. These advantages make the VA Streamline Refinance a good option for reducing the interest rate on your VA Loan.
What is a VA Streamline Refinance (IRRRL Program)
Pros of the IRRRL Program
Streamlined qualification process: The VA's leniency in requirements for an IRRRL means minimal documentation is typically needed, with no appraisal or income verification necessary. This allows for potential approval even if your income has decreased, your credit score has fallen, or your home value has declined. Moreover, the reduced paperwork often translates to expedited approval times.
Closing costs financing: With lower closing costs and the ability to include them in the new loan amount, refinancing without upfront expenses becomes feasible. The discounted funding fee further contributes to this advantage.
Potential for savings: Qualifying for a lower interest rate through an IRRRL can lead to reduced interest payments over the loan term, potentially lowering monthly payments and accelerating equity growth in your home.
Transition to fixed-rate loan: Switching from an adjustable-rate to a fixed-rate VA loan can result in substantial interest savings throughout the loan duration.
Cons of the IRRRL Program
Requirement for lower interest rate: VA IRRRL refinancing is only viable if the new interest rate is lower than the current rate, potentially necessitating waiting for interest rate drops before proceeding. An exception exists for transitioning from a VA ARM loan to a fixed rate, even if it's higher.
Inability to withdraw cash: Unlike a VA cash-out refinance, an IRRRL doesn't permit cash proceeds, limiting options for leveraging home equity for debt payment, home improvements, or other financial goals.
Presence of a funding fee: A 0.5 percent funding fee applies to VA IRRRLs, which can add to the refinancing costs.
Potential for lender-required documentation: While the VA sets no specific credit underwriting requirements, individual lenders may request additional documentation, underscoring the importance of thorough lender comparison to understand qualification criteria.
Call Toll-Free Number
Phone 888-214-3571