VA Loan Streamline Refinance Miami, Fort Lauderdale, Florida
VA loans in Miami and Fort Lauderdale, Florida, are loans which belong to a special loan program designed specifically for veterans. VA loans can be issued by any VA loan approved lender and are guaranteed by the federal government. The VA loan definitive characteristic is that Miami and Fort Lauderdale, Florida veterans with qualifying credit and income can purchase a home with no money down, which makes buying a home extremely attractive for those who have served in the military. In addition, VA loans also offer feature flexible requirements, no private mortgage insurance (PMI), and extremely competitive loan rates. VA Loan Streamline Refinance
The Miami and Fort Lauderdale, Florida VA loan also offer you the VA Loan Streamline Refinance, which is a specific VA refinance loan program available. The VA Loan Streamline Refinance is also known as the Interest Rate Reduction Refinance Loan (IRRRL), is sometimes called a VA-to-VA Loan, because you only can refinance your current VA loan avoiding other types of loans (like the FHA). The Interest Rate Reduction Refinance Loan allow you to refinance your current mortgage loan interest rate to a lower rate than you are currently paying.
The VA Loan Streamline Refinance is extremely popular because once you have already been approved for your initial VA purchase loan, it is relatively simple to refinance to lower your interest rate and experience considerable savings. Generally speaking, almost all active duty and/or honorably discharged service members are eligible for a VA loan or VA Loan Streamline Refinance. In most cases, a VA loan officer or lender with expertise in VA loans should be able to complete the loan within a month’s time in most cases.
VA loan refinance closing costs can be rolled into the cost of the refinance loan, allowing Miami and Fort Lauderdale, Florida veterans to refinance with no out-of-pocket expenses. Sometimes it is also possible for the VA loan lender to take the brunt of the cost in exchange for a higher interest rate on your loan.
In order to qualify for a VA Loan Streamline Refinance, you must meet the following requirements:
- Be current on your mortgage loan with no more than one 30-day late payment within the past year.
- Your new monthly payment for the VA Loan Streamline Refinance must also be lower than the previous loan’s monthly payment. (The only time this condition does not apply is if you refinance an ARM to a fixed rate mortgage.)
- You must not receive any cash from the VA Loan Streamline Refinance.
- You must certify that you previously occupied the property.
- You must have previously used your VA Loan eligibility on the property you intend to refinance (You may see this referred to as a VA to VA refinance).
- No appraisal or credit underwriting package is required when applying for a VA Loan Streamline Refinance.
- A VA Loan Streamline Refinance may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
- When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
- No lender is required to give you a VA Loan Streamline Refinance, however, any VA loan lender of your choosing may process your application for a VA Loan Streamline Refinance.
- Veterans are strongly urged to contact several lenders because terms may vary.
- A VA Loan Streamline Refinance can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used.
- A Certificate of Eligibility (COE) is not required. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.
- No loan other than the existing VA loan may be paid from the proceeds of a VA Loan Streamline Refinance. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.
- You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller if you assumed the loan.
- The occupancy requirement for a VA Loan Streamline Refinance is different from other VA loans. For a VA Loan Streamline Refinance, you need only certify that you previously occupied the home.
VA does not set a cap on how much you can borrow to finance your home in Miami and Fort Lauderdale, Florida. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you in Miami and Fort Lauderdale, Florida. The loan limits are the amount a qualified Miami and Fort Lauderdale, Florida veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county since the value of a house depends in part on its location.
The basic entitlement available to each eligible veteran is $36,000. Miami and Fort Lauderdale, Florida VA loan Lenders will generally loan up to four times a veteran’s available entitlement without a down payment, provided the Miami and Fort Lauderdale, Florida veteran is income and credit qualified and the property appraises for the asking price.
VA Funding Fee
Generally, all Miami and Fort Lauderdale, Florida veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category if you are a first-time or subsequent loan user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a:
- A veteran receiving VA compensation for a service-connected disability.
- A veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay.
- Surviving spouse of a veteran who died in service or from a service-connected disability.
The funding fee for second-time users who do not make a down payment is slightly higher. Also, National Guard and Reserve Veterans pay a slightly higher funding fee percentage. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you money in interest over the life of the loan, you may see a very large increase in your monthly payment if the reduction in the interest rate is not at least one percent (two percent is better).
Does the VA Loan Set Interest Rates for VA Streamline loans?
No. The VA does not set or control interest rates for the VA loan programs. Cause, the VA is not a lender, so they won’t lend you money. VA approved lenders are the ones who actually will lend you the money and the interest rates for VA loans are different from each lender because they are set by the market.
Does the VA Streamline Refinance Program Require a Credit Check and/or an Appraisal?
The VA itself does not require an appraisal or credit check when doing a VA streamline, but that doesn’t mean that a Miami and Fort Lauderdale, Florida lender will not require it. Requirements for appraisals and credit checks will vary by the lender; which is recommended to shop around for the best lender who adapt to your needs in Miami and Fort Lauderdale, Florida.
Do I Have to Use my Current Lender to Do a VA Streamline?
Many people hear about the VA loan streamline program through their current lender and assume that the only way to go through the program is through their current lender. False! With the VA streamline, you can use any VA approved lender. You might be surprised to see how much you can save just by making a few phone calls or asking a few lenders for a quote.
Can I Get Cash Back or Cash Out?
Generally speaking, no. The program is designed to help VA homeowners lower their rate with the least amount of paperwork possible and not to provide any cash back from the equity in their home. That said, occasionally there will be an overage when you go through the transaction and sometimes you may receive a small amount of money at closing or shortly after. But the amount shouldn’t be more than a few hundred dollars. If you need the cash, you should apply for a Cash-Out refinance.