VA Streamline Refinance Loans or IRRL
A VA Streamline Mortgage is a great benefit offered to those who have served our country. The Veteran mortgage loan program has been around for nearly 75 years. VA loans came out of The Servicemen’s Readjustment Act or The GI Bill of Rights. It was created in 1944 at the end of WWII to help retuning soldiers who had served their country. The VA mortgage loan program was designed to help active duty soldiers and veterans buy homes.
The VA Program insures the loan. It does not make the actual loan what it does is guarantee a portion of the loan balance should the homeowner(s) default on the mortgage. Over the course of 70 years there have been many updates to the program to improve the program. One such improvement was offering the VA Mortgage Program as a refinance option.
In 1970 The Nixon Administration passed the Veterans Housing Act. As a result, this allowed service members to use the VA loan program for refinances not just purchases.
Today one of the most popular VA programs is the VA Streamline Refinance or The IRRL (Interest Rate Reduction Loan). This program is designed lower rates and monthly payments..
Advantages of the Program
· First of all, the VA Streamline has no income requirements. Unlike typical loans you do not need to provide paystubs, w-2’w or tax returns.
· No LTV requirements. You can owe more on your home than what it is worth and still qualify.
· No asset requirements. Typically, bank statements are not needed.
· Also, there are no appraisal requirements. As a result, this saves veterans money.
· Another great aspect is that there are no out of pocket closing costs.
· Finally, the funding Fee is lower than a purchase or cash out refinance. Depending on the members status no funding fee may be required.
The VA Streamline Refinance is a great resource. Because there is No PMI on these loans it allows for a great monthly savings.
If you are or have served your country and would like to find out if you can save money by taking advantages of this program I can be reached at 860-334-1354 or emailed at [email protected].