Many veterans are unaware of how easy it is to utilize a VA Refinance Loan on their current home or an investment property that is backed by the VA. The VA has established the Interest Rate Reduction Loan (IRRL) as a seamless way to take advantage of the refinance process.
The VA Refinance is considered a streamline refinance. This means you are not required to send in pay stubs, tax returns or W2’s to qualify. Most of the qualifying process is based upon your credit score and history of making your mortgage payment. A credit score minimum for most lenders on a VA Loan Refinance is 620.
Many veterans have seen their home prices decrease substantially over the past couple years. This type of program makes the process of refinancing much easier – even if your home has lost value. Many lenders are able to do a VA Refinance without having a full property appraisal done on your home.
Another benefit of the VA Refinance Loan is the reduced funding fee which is .5% for IRRL’s – 0% if you have a documented service connected disability. This helps keep your loan amount lower, which helps save you even more money when you refinance.
Many veterans have wondered if they can do a VA Refinance on their home if they do not currently have a VA Loan. The answer is yes, a veteran can take advantage of the VA loan even if they are not currently in a VA loan. The process is a little different than an IRRL, but may still prove simple and beneficial for a veteran to do. The most notable benefit being, most FHA or Conventional loans require borrowers to pay mortgage insurance monthly as part of their payment. When a veteran refinances out of these loans to a VA loan, they not only have the option of dropping their rate, but can drop their mortgage insurance as well. This drop in mortgage insurance alone can save hundreds of dollars a month depending on your loan amount.
These are just a few of the benefits of a VA Interest Rate Reduction Loan. Contact one of our VA Loan Specialist if you have further questions. 1-866-511-5054