VA streamline refinance lenders Miami Fort Lauderdale Florida
VA Streamline Refinance: AKA The VA IRRRL Program Miami Fort Lauderdale Florida
Lenders. Refinance Miami Fort Lauderdale Florida.
Lenders are persons or entities (private sector or government) that originate, hold, service, fund, buys, sells or otherwise transfers a loan guaranteed by the Department of Veterans Affairs. VA streamline refinance lenders Miami Fort Lauderdale Florida
If you currently have a VA loan Miami Fort Lauderdale Florida and are looking to save money on your monthly mortgage payment by lowering your interest rate, the VA refinance Miami Fort Lauderdale Florida streamline refinance program is worth learning more about.
The VA streamline refinance Miami Fort Lauderdale Florida is the most popular refinance program for Veterans who currently have a VA loan because it allows you to get a lower interest rate with the least possible hassle. Many VA-approved lenders will offer the benefits of:
no credit verification may be necessary refinance Miami Fort Lauderdale Florida
no appraisal required refinancing Miami Fort Lauderdale Florida
Streamline refinance a primary residence (as long as you can certify that you previously owned the property) refinance Miami Fort Lauderdale Florida
The VA IRRRL program is one of the most beneficial refinance programs offered to Veterans and Military service members today, including some of the most competitive rates. VA streamline refinance lenders Miami Fort Lauderdale Florida
VA Streamline Refinance Qualifications Miami Fort Lauderdale Florida
In order to qualify for a VA streamline refinance, you must meet the following requirements:
Up-to-date on your mortgage payments without exceeding a one 30-day late pay within the past 12 months. refinance Miami Fort Lauderdale Florida
The new VA monthly mortgage payment must be lower compared with the original VA mortgage payments prior to the refinance (this would usually pertain to switching from an ARM to a Fixed-Rate Mortgage). refinance Miami Fort Lauderdale Florida
You cannot expect to receive any cash from the refinance but only to save.
The property in which you choose to refinance must be the one that you previously use your VA entitlement for. (You may see this referred to as a VA-to-VA refinance.) refinance Miami Fort Lauderdale Florida
The VA streamline refinance is also known as the VA IRRRL program (which stands for Interest Rate Reduction Refinance Loan) and they are the exact same program – just referred to by two different names. refinance Miami Fort Lauderdale Florida
VA Streamline IRRRL General facts and Guidelines refinance Miami Fort Lauderdale Florida
Some simple facts and general guidelines about the VA streamline refinance program Miami Fort Lauderdale Florida includes:
The VA streamline has less documentation than a full refinance and many times the lenders can close faster with less documentation than a full refinance. Refinance Miami Fort Lauderdale Florida
Many lenders can do a VA streamline without requiring an appraisal. The VA does not require an appraisal, credit information, or underwriting, but some VA approved lenders may require some or all of these items.
One rule for the VA streamline is that the new monthly payment must be lower than the previous loan’s monthly payment. One exception to this rule is when you are refinancing an adjustable rate mortgage or the new loan term is less than the old one.
Your new interest rate must have a lower interest rate than the previous loan. An exception is if you are refinancing from an adjustable rate loan.
With the VA streamline program, your new loan can be a fixed rate or adjustable rate loan.
A VA funding fee is usually required. Refinance Miami Fort Lauderdale Florida
The VA streamline program allows for energy efficient improvements that can be refinanced into the loan.
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 Miami Fort Lauderdale Florida.
The VA streamline program does not allow you to receive any cash out at the loan closing.
You must be current on your existing VA mortgage Miami Fort Lauderdale Florida and not have had more than one 30-day late mortgage payment within the past 12 months.
These are just the highlights of the VA streamline loan Miami Fort Lauderdale Florida. Many people have questions about the VA streamline loan, so here are a few of the more frequently asked questions.
A VA Streamline Refinance is also known as an Interest Rate Reduction Refinance Loan, or IRRRL because it is designed to help homeowners lower their mortgage rate quickly and easily. This special refinance type is available to homeowners who currently have a VA home loan.
VA Streamline: An Easier Approval Process. Refinance Miami Fort Lauderdale Florida
The term “streamline” describes this loan product well. It requires much less documentation than a standard refinance. It’s the perfect way for current and former US military veterans to save money on their monthly mortgage payment without a lot of time and paperwork. A short list of VA streamline advantages is as follows.
No income documentation is required. Refinance Miami Fort Lauderdale Florida
No bank statements or other asset documentation required. Refinance Miami Fort Lauderdale Florida
No appraisal required. Refinance Miami Fort Lauderdale Florida
You can roll all closing costs into the new loan, eliminating out-of-pocket expenses. Refinance Miami Fort Lauderdale Florida
You can finance energy efficiency improvements into the new loan. Refinance Miami Fort Lauderdale Florida
How Can I Use a VA Streamline Refinance? Refinance Miami Fort Lauderdale Florida
When current mortgage interest rates are low, it’s often a good idea to refinance. A refinance is simply a new loan that pays off the existing loan. The new loan has a lower rate or otherwise improves the homeowner’s situation Miami Fort Lauderdale Florida.
The Veteran’s Administration developed this refinance program in 1980 to help our nation’s veterans get a lower mortgage payment with reduced hassle, time, and expense Miami Fort Lauderdale Florida.
A VA streamline refinance allows the borrower to:
Lower their rate. Refinance Miami Fort Lauderdale Florida
Reduce their monthly payment. Refinance Miami Fort Lauderdale Florida
Convert an adjustable rate loan into a fixed rate. Refinance Miami Fort Lauderdale Florida
Finance energy-efficient repairs. Refinance Miami Fort Lauderdale Florida
Shorten or lengthen the loan term (e.g. 15 years to 25 years, or 30 years to 15 years) Refinance Miami Fort Lauderdale Florida
The biggest advantage of a VA streamline over other refinance programs is that no income or asset documentation is required, nor is an appraisal. Underwater homes are eligible because the value of the home is not considered. VA streamline refinance lenders Miami Fort Lauderdale Florida
VA Streamline Rates Refinance Miami Fort Lauderdale Florida
Mortgage rates are incredibly low right now. What’s even better, VA loan rates are much lower than even “standard” rates published by Fannie Mae and Freddie Mac. According to a recent report by mortgage software company Ellie Mae, VA rates averaged 0.41% lower than conventional Fannie/Freddie rates.
That means VA loan holders have access to very low mortgage payments compared to those without a VA loan. Why are rates so low for VA? These loans are heavily backed by the federal government. Lenders view these loans as low risk and pass the savings on to the borrower.
VA Streamline Requirements Refinance Miami Fort Lauderdale Florida
VA to VA. The VA streamline program is available to refinance existing VA home loans. The borrower may not use the program if they have an existing FHA, USDA, or Fannie Mae/Freddie Mac loan. The VA streamline is strictly a VA-to-VA program. If your loan is not VA backed, see check out the FHA Streamline Refinance and Conventional Refinance. If you have another loan type but want a new VA loan, consider a VA cash out loan.
Reduction in Payment Miami Fort Lauderdale Florida. To qualify for the VA streamline program, the monthly payment on the new VA streamline loan must be lower than the previous payment. Refinance Miami Fort Lauderdale Florida.
ARM to Fixed Miami Fort Lauderdale Florida. There is an exception to the “reduction in payment” rule when refinancing from an adjustable or hybrid loan to a fixed rate. Going from an ARM to a fixed rate often increases the payment. However, this is allowed since the homeowner receives a more stable loan product. VA streamline refinance lenders Miami Fort Lauderdale Florida
Occupancy. The borrower must certify that the property is either currently or previously occupied as a primary residence. In some cases, the veteran must move out of the home due to PCS orders or other circumstances. In these cases, a VA streamline may still be available.
VA Loan Payment History Miami Fort Lauderdale Florida. To qualify for the VA streamline loan, there can be no more than one payment in the previous twelve months that was more than 30 days past due. If you do have a 30-day late mortgage payment, you’ll have to wait until you have built a clean 12-month history.
No Cash Out. Miami Fort Lauderdale Florida The VA streamline loan does not allow the borrower to take out a bigger loan they currently owe in order to receive cash at closing. However, the VA cash out refinance does allow it. VA streamline refinance lenders Miami Fort Lauderdale Florida
Cash Needed to Close a VA Streamline. In most cases, all closing costs can be rolled into the new loan, so there is little or no out-of-pocket expense. Ask your lenders for a lender credit for all or part of the closing costs. This can reduce the amount of the new loan.
Appraisal. The VA does not require an appraisal, but some lenders will require one. If your home is underwater (i.e. you have negative equity), it’s best to find lenders that do not require an appraisal. Find lenders that do not require an appraisal here.
Minimum Credit Score for a VA Streamline. VA streamline refinance guidelines Miami Fort Lauderdale Florida say no credit report is required. However, most or all lenders will require a credit report to prove you are in good standing on your VA mortgage and to prove sufficient credit history. While the VA does not set a minimum credit score, most lenders require between 600-620 to qualify. VA streamline refinance lenders Miami Fort Lauderdale Florida
Questions and Answers about the VA Streamline Loan Program. Miami Fort Lauderdale Florida
I have a 5/1 ARM loan; can I use the VA streamline loan program? Yes. A 5/1 loan is a hybrid loan and is considered an adjustable rate mortgage. Other hybrids include 3/1, 7/1 or even 10/1 where the interest rate is fixed for an initial period. Even though the payment is fixed for a time, the rate will eventually adjust. A VA streamline is a great way to refinance into a fixed rate loan.
What credit score do I need Miami Fort Lauderdale Florida? Each lender sets their own minimum credit score for this program. Typically, that score is 640, but a few lenders allow a 620 or even lower. VA streamline refinance lenders Miami Fort Lauderdale Florida
My property is a rental. Can it qualify? As long as you can prove the home was once your primary residence, the property should be eligible.
Will my lenders need a new title report Miami Fort Lauderdale Florida? Yes, the new loan will need a new title insurance policy. The title report will provide evidence to the lender that there are no outstanding judgments or liens that will affect the new loan.
Can the lender use my old certificate of eligibility (COE)? Yes, in fact, you don’t need a COE at all. Your current VA loan proves that you are eligible. VA streamline refinance lenders Miami Fort Lauderdale Florida
Do I have to use the same VA lender I used with my original VA loan? No, you can use any lender that is authorized to underwrite and approve VA loans.
Can I skip two payments with a VA streamline loan? It may seem like it but in reality, no payments are missed when using a VA streamline Miami Fort Lauderdale Florida. At your closing, the old VA loan will be paid off entirely which includes accruing interest. In addition, some interest will be prepaid on the new loan. If both interest payments were included in your new loan, the payments were made, just not out of your pocket.
My lender wants an appraisal, paystubs, bank statements and other things that are not required. What’s going on? Even though the VA does not require these items, a VA lender may impose its own “overlays,” meaning additional rules.
If a particular lender overlay is keeping you from using the VA streamline refinance program.
I’m Ready to Apply for my VA Streamline Refinance
VA streamline rates are very low and are helping thousands of current and former US military service members lower their housing costs Miami Fort Lauderdale Florida. Lenders are eager to help with these loans. There is so little documentation needed that mortgage companies can get applications through the system very quickly. VA streamline refinance lenders Miami Fort Lauderdale Florida
There are very few reasons a homeowner would not apply for this payment-reducing program. It’s a great value and easy to qualify for. Miami Fort Lauderdale Florida
An existing VA mortgage, just like any other mortgage, can be refinanced. A refinance is simply the process where one mortgage replaces another; it’s a “re-finance.” The VA home loan, however, is eligible for both “streamline” refinance and a standard refinance. A VA streamline refinance, sometimes referred to by the acronym IRRRL or Interest Rate Reduction Refinance Loan, is a VA program requiring minimal documentation from the borrower as well as no need for an appraisal. VA streamline refinance lenders Miami Fort Lauderdale Florida