Refinance your VA loan the easy way -- via¬†the program's streamlined refinance option.
Officially named the¬†Interest Rate Reduction Refinance Loan (IRRRL) -- but often¬†called the "VA Streamline Refinance" -- the IRRRL waives the typical verifications required with¬†a refinance, including checks of credit score, income and debts, and history of employment.
The Department of Veterans Affairs relies on mortgage payment history to determine a homeowner's eligibility instead.
So, if you've paid your mortgage on-time for the last 12 months, and you'll reduce your monthly payment via a refinance, it's likely you'll qualify for the VA IRRRL.
And, because VA mortgage rates can¬†be up to¬†50 basis points (0.50%)¬†below comparable conventional mortgage rates, reducing your monthly payment may be easier and closer¬†than you think.
Have you seen today's VA mortgage rates?Click to see today's rates (Jun 30th, 2016)
Created in 1944 as part of the G.I. Bill, the VA Loan Guaranty Program helps military borrowers to establish roots in a community via homeownership.
The Department of Veterans Affairs¬†defines military borrowers, in general, as borrowers who have served 181 days during peacetime, 90 days during wartime, or have spent 6 years in the Reserves or National Guard.
Beyond such veterans and active duty service personnel, the Department of Veterans Affairs also makes its home loan program available to surviving spouses of service members killed in the line of duty, and honorably discharged service members.
More than 21 million VA loans have been made since the program's inception.
One reason¬†why military borrowers flock to¬†VA loans is that VA loans allow for 100% financing.
By comparison, most other common loan programs, including the Conventional 97 and the HomeReady‚ĄĘ program require a 3 percent downpayment, at minimum; FHA loans require 3.5% down.
Even better is that¬†VA loans never require mortgage insurance.
No matter how much or how little you put down on a home, as a military borrower using VA mortgages, you'll pay no mortgage insurance whatsoever.
Another VA benefit is that the VA loans are assumable.
When your is assumable, it means that you can sell your home with your mortgage attached; an eligible buyer can "assume" your mortgage at its current rate.
Assumable mortgages are especially marketable in an environment where¬†mortgage rates are rising.
Considering¬†today's cheap mortgage rates, your home's assumable VA mortgage, then, can help improve its marketability in five or ten years or whenever it is that you're ready to sell.
Here are some veterans discussing their¬†personal experiences with VA loans.
But, for all the reasons to use a VA loan on your next home purchase, it can be the benefits provided by the VA loan program¬†after¬†closing that are most valuable.
With your VA loan comes access to the¬†VA Streamline Refinance.Click to see today's rates (Jun 30th, 2016)
The VA Interest Rate Reduction Refinance Loan (IRRRL) is a special benefit to homeowners with existing VA financing.
Pronounced "earl",¬†the IRRRL program lets¬†VA-backed homeowners¬†refinance to lower mortgage rates with very little hassle -- often within 30 days from application.
The IRRRL's eligibility criteria is as follows:
These rules are steadfast. However, the Department of Veterans Affairs will grant an exception on the last point.
If your IRRRL includes the refinance of an ARM into a¬†fixed-rate loan,¬†your mortgage payment is not required to reduce.
Beyond this, there are few steps in the VA Streamline Refinance¬†mortgage approval process.
According to the official VA loan guaranty guidelines, with a VA Streamline Refinance, lenders are not required to perform credit score verifications, income documentation verification, or employment checks.
In addition, with a VA loan refinance, home appraisals are not required.
Regardless of your home's value, you can use the IRRRL program.¬†Apply for a VA refinance with any VA-approved mortgage lender.
The VA IRRRL¬†is among the simplest, fastest ways to refinance a U.S.¬†home loan. With mortgage rates down, then, consider your eligibility to refinance.
Get today's live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.Click to see today's rates (Jun 30th, 2016)
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Judy T. Business Owner
I read The Mortgage Reports every day.
Katrina B. Lab Technician
I look forward to reading The Mortgage Reports. Its information and updates helped me to buy my first home. Thank you!
Marie M. Real Estate Agent
I have been a Realtor for more than 30 years and enjoy The Mortgage Reports. It's terrific to learn something new almost every day.
2016 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)