The VA Loan Guaranty program is a¬†popular mortgage choice among today's U.S. military veterans and active service personnel.¬†
Tens of thousands of military borrowers¬†use the VA home loan program annually. VA mortgage rates today are low, the program¬†requires no down payment whatsoever, and there is never¬†a charge for¬†mortgage insurance.
VA home loans come with another big benefit, too -- they give access to the VA Streamline Refinance.¬†The¬†VA Streamline Refinance is a simple refinance program which waives most¬†documentation requirements for a borrower, and requires no home appraisal.
When mortgage rates drop,¬†the VA Streamline Refinance makes getting a new, lower rate simple.
The VA Loan Guaranty program is in its 70th year and its value to U.S. homeowners remains strong. The program experiences double-digit growth annually and its refinance program was used more than 380,000 times last year alone.
The VA refinance program is officially known as the Interest Rate Reduction Refinance Loan; abbreviated as IRRRL. "IRRRL" is commonly pronounced "Earl", but many lenders alternatively refer to it as the VA Streamline Refinance.
The VA Streamline Refinance is similar to the Federal Housing Administration's¬†FHA Streamline Refinance in neither program requires the verification of income via W-2 or tax returns; of reserves via bank statements; or, of home value via an appraisal.
Neither program requires a credit score verification either, but lenders often perform one anyway.
The popularity of the¬†VA Streamline Refinance program has been boosted by today's low mortgage rates. Veterans who purchased homes in the 1990s and during the early part of last decade with a VA mortgage have used the IRRRL to lower their respective mortgage rates by as much as four percentage points.
For some homeowners, this represents an annual savings of 62 percent!
Meanwhile, it's not just long-time VA homeowners who are using the¬†VA Streamline Refinance program. Recent VA homeowners use it, too.
In order to be eligible, the Department of Veterans Affairs requires that only one of the following is true:
Across the county, the flexibility of the VA IRRRL has helped U.S. veterans and active service persons to reduce their monthly mortgage payments; and free up cash for other purposes including everyday living, saving for retirement, and discretionary spending.
Still, there are hundreds of thousands of VA homeowners who have yet to use the program; who assume that applying for a VA Streamline Refinance is difficult or cumbersome. It is not.
The VA Streamline is among the easiest and fastest refinance programs available¬†today.
The Department of Veteran Affairs makes the¬†VA Streamline Refinance available to all military borrowers with an existing loan via the VA Loan Guaranty program. The VA Streamline Refinance is available in all states and homeowners can use it an unlimited number of times.
The program's eligibility standards are purposefully loose.
Very little paperwork is required for the VA IRRRL. Borrowers are not required to produce a pay stub which verifies current income; nor are they required to¬†produce a bank statement which verifies current assets and reserves.
Furthermore, via the¬†VA Streamline Refinance program, the Department of Veterans Affairs waives the typical home appraisal requirement which accompanies a refinance. This means that all homes -- regardless of value -- can be refinanced via the¬†VA Streamline Refinance.
The¬†VA Streamline Refinance is terrific for homeowners who are underwater on their mortgage, or whose homes have lost value since the date of purchase.
Even better, borrowers can include the loan closing costs in an IRRRL, which eliminates all of their out-of-pocket refinance expenses. Zero-closing cost mortgages are typically available, too -- be sure to ask your lender.
Current mortgage rates are low and the VA Streamline Refinance program remains popular. Homeowners are reducing their payments and getting access to today's low rates. The¬†VA Streamline Refinance is a simple and quick way to refinance your home.
Compare today's VA mortgage rates among lenders. Rates are available for free online with no social security number required to get started and no obligation to proceed. See what a¬†VA Streamline Refinance can do for you today.
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.
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2017 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)