VA streamline refinance guidelines Miami Fort Lauderdale Florida
What do they call it? Streamline refinance guidelines Miami Fort Lauderdale Florida.
VA to VA refinance goes by a lot of names. Some of the most common alternatives are “VA Streamline Refinance” and “VA IRRRL” streamline
Miami Fort Lauderdale Florida
, which stands for “U.S. Department of Veterans Affairs Interest Rate Reduction Refinance Loan”. Don’t let the terminology confuse you.
What is VA to VA Refinance? Streamline refinance guidelines Miami Fort Lauderdale Florida.
It is a VA-guaranteed loan made to refinance an existing VA home loan. You need to already have a VA home loan to qualify for this type loan. You can’t use a VA to VA refinance Miami Fort Lauderdale Florida to purchase a new home. These loans streamline come generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing VA loan.
Does it require a credit check? Streamline refinance guidelines Miami Fort Lauderdale Florida.
Generally, no appraisal, credit information or underwriting is required. Full-document underwriting is not required. We do not require pay stubs, W-2 forms, or any other proof of income. VA streamline refinance guidelines Miami Fort Lauderdale Florida
The only requirements for a VA Streamline Refinance Miami Fort Lauderdale Florida are a clean mortgage payment history for the last 12 months, a credit-score above 600, no outstanding collections accounts, and no bankruptcy filings in the last two years.
The new loan will reuse the entitlement you originally used. A Certificate of Eligibility is not required. VAMortgage.com can verify your previous loan information by using the VA’s automated system. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Do I have to pay any costs or fees up front? Streamline refinance guidelines Miami Fort Lauderdale Florida.
A Streamline Refinance may be done with “no money out of pocket”. Instead, all costs may be included in the new loan. The only cost required by VA streamline Miami Fort Lauderdale Florida is a funding fee of 1/2 percent of the new loan amount, which may be paid at closing or added to the new loan. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Veterans entitled to VA disability compensation may be exempt from the funding fee. In addition, the only other expenses are title work which is required by all states and the establishment of an escrow account to pay your homeowner’s insurance and taxes.
How can rates be structured? Streamline refinance guidelines Miami Fort Lauderdale Florida.
They can be a fixed rate or a hybrid Adjustable Rate Mortgage (ARM). There is a good amount of flexibility in the structure of a VA Streamline Refinance loan Miami Fort Lauderdale Florida.
What are the loan refinancing requirements? Streamline refinance guidelines Miami Fort Lauderdale Florida.
A VA to VA Refinance streamline must bear a lower interest rate than the loan it is refinancing. An exception to this would be if the loan it is refinancing is an ARM.
Are there things it cannot be used for? Streamline refinance guidelines Miami Fort Lauderdale Florida.
A VA IRRRL cannot be used to take equity out of the property or pay off debts. The only debt that can be paid with an IRRRL is that associated with the VA loan Miami Fort Lauderdale Florida being refinanced. Loan proceeds may only be applied to paying off the existing VA loan and to the costs of obtaining or closing the IRRRL. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Therefore, the general rule is that a borrower cannot receive cash proceeds from the loan. If necessary, the refinancing loan amount must be rounded down to avoid payments of cash to the veteran.
Bonus: Are there any exceptions to #7? Streamline refinance guidelines Miami Fort Lauderdale Florida.
There is one exception to #7. The one instance where you may be able to use a Streamline Refinance to get cash out is in the event that the cash is used for the cost of energy efficiency improvements up to $6,000.
How Can I Get Started? Streamline refinance guidelines Miami Fort Lauderdale Florida.
Getting started with your VA to VA refinance streamline is easy! Just follow these three simple steps:
Speak With A Representative – One of our friendly VA mortgage experts will work with you to learn about your specific situation and needs.
Apply for a Loan– After determining the best refinancing option for you, we can walk you through the process of completing your loan application.
If you still have questions, we have the answers you seek! Whether you have questions about closing costs, limits, appraisals or refinancing a jumbo VA loan, our representatives are standing by to help.
When it’s time to refinance, VA borrowers don’t have to give up their current loans benefits. The VA IRRRL – interest rate reduction refinance loan – program, sometimes also referred to as a “VA Streamline,” lets them easily refinance their VA loan into a new one. Streamline loans usually require less paperwork and have easier credit requirements to qualify than the original loan did. Furthermore, the paperwork is minimal.
VA IRRRL Basics Streamline refinance guidelines Miami Fort Lauderdale Florida.
Sometimes also called a “VA-to-VA” loan, the VA IRRRL is designed to let you refinance your veteran home loan to a new one and either lower your interest rate, the transition from an adjustable-rate loan to a fixed-rate loan, or both. VA IRRRLs are designed to be easy to take out and close quickly. The VA IRRRL streamline program requires that there is a net benefit to the borrower either by reducing the loan payment* or getting the borrower out of an adjustable rate mortgage. VA streamline refinance guidelines Miami Fort Lauderdale Florida
VA Requirements for an IRRRL Streamline refinance guidelines Miami Fort Lauderdale Florida.
The stringent VA requirement to have your Certificate of Eligibility gets waived for an IRRRL streamline. Since you had obtained one to get your original veteran home loan, it gets carried over to your IRRRL refinance loan. Disabled veterans may also qualify for a VA funding fee waiver. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Loan Terms Streamline refinance guidelines Miami Fort Lauderdale Florida.
The IRRRL only works when you refinance an existing VA home loan. Currently available only with fixed rates, you can choose any loan term from 10 to 30 years. So, if you’re already seven years into a 30-year loan, you can simply refinance your loan for a 23- year term to stay on the same schedule. Thanks to its government guarantee, you can roll all of your closing costs into the new loan. The minimal out of pocket expense allows you to take advantage of the program to lower your monthly payment* or convert an adjustable rate loan into a fixed-term loan. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Choosing a VA IRRRL Lender Streamline refinance guidelines Miami Fort Lauderdale Florida.
The VA doesn’t limit your choice of lenders, provided the lender is VA approved. You don’t have to use your current mortgage provider or servicer to refinance your existing VA home loan. It’s always best to use a lender that is experienced with the VA IRRRL program as these guidelines do change frequently. The best way to ensure you have the most current information is to contact a lender experienced with VA home loans and find out what the VA requires. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Qualifying for the PennyMac IRRRL Streamline refinance guidelines Miami Fort Lauderdale Florida.
When you take out an IRRRL through VA Homelend, you get to take advantage of VA lending terms that help you get qualified quickly. The IRRRL can be for up to 100 percent of your home’s value, but cannot exceed the original loan amount. Primary, second, and investments homes are eligible as long as the existing loan already has a VA home loan. There is no prepayment penalty on any of our loans plus we offer a biweekly payment plan as a convenience for those who want to pay off their loan sooner. VA streamline refinance guidelines Miami Fort Lauderdale Florida
The value gets calculated with a very basic appraisal. The program doesn’t require the lender to calculate debt to income ratio and requires minimal documentation. The VA IRRRL program’s main requirement is no mortgage late payments in the last 12 months.
IRRRL Refinancing: Quick Facts about the IRRRL Program Streamline refinance guidelines Miami Fort Lauderdale Florida.
The IRRRL is a simple process compared to the original VA mortgage loan. Most of the time, the lender is able to close automatically.
The VA does not require an appraisal, credit information, or underwriting, but your VA-approved lender may require these.
You can roll all closing costs and fees into the new loan so there are no out-of-pocket charges to you.
The monthly payment for the IRRRL must be lower than the previous loan’s monthly payment unless you are refinancing an adjustable rate mortgage or the new loan term is less than the old one.
The IRRRL must be at a lower interest rate than the previous loan. The exception is if you are refinancing from an adjustable rate loan. The reason you might want a higher, fixed rate loan is that your adjustable rate loan’s interest rate will eventually increase.
Energy efficient improvements can be refinanced into your IRRRL, up to $6,000.
Your monthly mortgage payment may increase if you finance energy efficient home improvements, finance your closing costs including the funding fees, finance points, or get a higher interest rate if you move to a fixed rate loan.
You cannot receive any cash out at closing with an IRRRL.
You must be current on your existing VA mortgage and not have had more than one 30-day late mortgage payment within the past 12 months. VA streamline refinance guidelines Miami Fort Lauderdale Florida
IRRRL Lenders: What You Want to Know
When it comes to finding the “right” IRRRL Miami Fort Lauderdale Florida lender, the first thing to know is that not every VA approved lender has the same guidelines for the IRRRL Miami Fort Lauderdale Florida program. Each lender may have different requirements regarding credit scores, appraisals or other things that may apply to your situation. Because of this, it is important that you speak with multiple VA approved lenders Miami Fort Lauderdale Florida who can help get you a written rate quote so that you can lay them all out and compare. You want to be sure that you pick the right lender for your particular situation – and you might also be surprised to learn how much money you can probably save just by shopping a few lenders.
Ready to get started Miami Fort Lauderdale Florida? Submit your information below and we will match you with a great VA approved lender who can give you a written rate quote on an IRRRL refinance.
For many Veterans who currently have VA loans, they are aware that the VA IRRRL refinance program is designed to let them take advantage of lower rates when they are available with an as-easy-as-possible refinancing program. The most popular question that many of these Veterans have on an ongoing basis is:
IRRRL Rates: What are the VA IRRRL rates today? Streamline refinance guidelines Miami Fort Lauderdale Florida.
Because IRRRL rates change multiple times each day and can vary widely from VA lender to VA lender, the most accurate way to determine rates is to get a personalized quote from a VA-approved lender. To get started, just fill out your contact information below – it only takes a minute.
Alternatively, here’s a simple look at what some of the leading lenders are offering in today’s marketplace.
IRRRL Rates: Shop Around Streamline refinances guidelines Miami Fort Lauderdale Florida.
Once you have a general idea of where IRRRL rates Miami Fort Lauderdale Florida are currently, the next step is to shop around for the best VA lender who has the best IRRRL rates available. IRRRL rates vary from lender to lender and from a single lender, many times they vary from day to day.
IRRRL rate quotes should be free from VA lenders and after getting your information, they will provide you with a Good Faith Estimate of what exactly your IRRRL rate would be if you were to get an IRRRL Miami Fort Lauderdale Florida loan done right then.
What is VA Refinancing? Streamline refinance guidelines Miami Fort Lauderdale Florida.
Through the VA Loan, eligible veterans, service members and surviving spouses of service members have access to special financing options designed to lower monthly mortgage costs or provide the ability take cash out of a home’s equity.
Benefits of VA Loan Refinancing Streamline refinance guidelines Miami Fort Lauderdale Florida.
Those interested in reducing their mortgage rate should consider the VA Streamline refinancing, otherwise known as an IRRRL (interest rate reduction refinance loan). With the VA Streamline, homebuyers have the opportunity to lower their interest rate, providing additional cash flow each month. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Additionally, homeowners have the ability to change the terms of their loan, switching from an adjustable rate to a fixed-rate, or a 30 year to a 15-year loan in order to pay off their mortgage sooner.
Those contemplating taking cash out of their home’s equity should consider the VA Cash-Out refinance. With the Cash-Out refinance, home buyers can use the equity in their home to help pay other obligations. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Additionally, homebuyers wanting to refinance from a different loan program into the VA Loan can do this through the Cash-Out refinance program.
VA Interest Rate Reduction Refinancing Streamline refinances guidelines Miami Fort Lauderdale Florida.
The VA Streamline, which is officially known as an Interest Rate Reduction Refinance Loan, or IRRRL, was created so that eligible homeowners had the opportunity to receive a lower rate and decrease monthly expenses.
In order to qualify, the homeowner is required to currently have a VA Loan and must also receive a lower interest rate and lower monthly payments with the refinance. That is unless the borrower is refinancing an adjustable rate mortgage to a fixed rate.
The VA does not require a credit check or home appraisal to receive a VA Streamline Refinance; however, in today’s lending climate, those considering a Streamline Refinance should expect lenders to look at credit scores as well as order a home appraisal.
With the Streamline Refinance, origination fees and total costs are capped to keep the up-front costs as low as possible for the homeowner.
VA Cash-out Refinancing Streamline refinance guidelines Miami Fort Lauderdale Florida.
Another popular refinancing option is the VA Cash-Out Refinance, which allows you to tap into your home’s equity and extract cash. Borrowers aren’t required to have a VA Loan in order to choose this option; many homeowners use the cash-out option to refinance from an FHA or conventional loan.
Qualified homeowners may be able to refinance up to 100 percent of their home’s loan-to-value and use the proceeds for home repairs, remodeling, and other needs. VA streamline refinance guidelines Miami Fort Lauderdale Florida
When to Refinance Streamline refinance guidelines Miami Fort Lauderdale Florida.
Homeowners considering a VA Loan Miami Fort Lauderdale Florida refinance should understand that timing is everything when refinancing a mortgage.
In most cases, it wouldn’t make sense to refinance a mortgage if you don’t plan on staying in that home for the near-future, just like it wouldn’t make sense to refinance at a time when interest rates are soaring. VA streamline refinance guidelines Miami Fort Lauderdale Florida
Your goal should be to achieve a lower interest rate that cuts monthly payments, significantly decreasing the amount of interest paid over the life of the mortgage.
If you have a VA loan on your home right now, you may qualify for a new refinance mortgage that serves your needs better. If you get a VA Streamline Refinance Miami Fort Lauderdale Florida, the process of refinancing may be faster and easier than you’d expect, especially if you are not looking to obtain cash out.
IA VA Streamline Refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), features:
Less paperwork Miami Fort Lauderdale Florida
No home appraisal Miami Fort Lauderdale Florida
Faster closing Miami Fort Lauderdale Florida
Another popular feature of a VA Streamline Refinance is that it can reduce your interest rate so you can lower your monthly payments and save money over the life of your loan. Miami Fort Lauderdale Florida
You can also use a VA Streamline to refinance an existing VA adjustable rate mortgage (ARM) to a fixed-rate loan, even if it does not result in a lower interest rate.
However, you cannot get cash from this type of loan. If you need extra cash for expenses, you may want to consider a VA Cash-out Refinance Miami Fort Lauderdale Florida.
You will need to contact a VA-approved lender to see if you qualify for a VA loan refinance. Your lender will look at your credit score, income, and other factors to determine this. As a VA-approved lender with more than 25 years of experience, Freedom Mortgage can help you understand the benefits and requirements of a VA Streamline Refinance mortgage Miami Fort Lauderdale Florida.
VA Loan Eligibility Streamline refinance guidelines Miami Fort Lauderdale Florida.
Before you can obtain a VA refinance a mortgage, you need to determine your VA loan eligibility. If you have served or are now serving in the Armed Forces, the Reserves/National Guard, or if you are a surviving spouse of a Veteran, you can request a Certificate of Eligibility (COE) for a VA loan refinance. VA streamline refinance guidelines Miami Fort Lauderdale Florida
VA Homelend can help you apply for a COE, or you can contact the Veterans Administration directly Miami Fort Lauderdale Florida.
Find out more about the VA Streamline Refinance program. Call VA Homelend today; we are available to help you take advantage of the benefits you have earned. VA streamline refinance guidelines Miami Fort Lauderdale Florida