The VA IRRRL, or VA Interest Rate Reduction Refinance Loan, simply known as the 2017 VA Streamline Refinance is a refinancing option for people who currently have an existing VA Loan. By looking at the name, 2017 VA Streamline Refinance, you will notice the word Streamline, which in this case is a good sign because in order to Streamline the process, this is a minimal document loan. What this means is that a lot of the documents that would be required under a standard refinance or purchase is not needed like income verification, bank statements, or even a current appraisal of the home. In the following sections of this article, we are going to go through the various parts of the 2017 VA Streamline Refinance so that hopefully you can put this knowledge to good use when looking to refinance your VA Loan.
Before we go into what a 2017 VA Streamline Refinance, it is smart to know the basics of the 2017 VA Loan to give you an understanding of the original loan and how the streamline refinance works. VA Loans are loans designed only for veterans of the military or surviving spouses of military members who were killed in the line of duty fighting for our country. In order for someone to obtain a VA Loan, it is required that the borrower has a Certificate of Eligibility or COE for short which certifies that the borrower has served for the adequate time necessary for a VA Loan. In order to obtain your COE you will need to have put in the following service requirements: 90 days of service during wartime, 181 days of service during peacetime, 6 years in the Reserves or National Guard, or a surviving spouse of a member who was killed in the line of duty. Aside from this, there aren’t any many other pertinent guidelines for these loans as there is not a required credit score needed for a loan, however most lenders will want at least a 620 FICO. However, at Loan Consultants we have the access to getting you a VA Loan with as little as a 580 FICO score. VA Loan Guidelines also don’t require a debt-to-income ratio with most lenders enforcing a 50% debt to income ratio. Once again, this is where Loan Consultants shines as we have seen debt to income ratios go to 60% and the loan was still approved and closed on time. Just a reminder, if you are looking for a VA Loan, you need to do your homework and make sure you work with a lender who can offer the best guidelines to fir your situation. We try to deal with the least amount of lender overlays as possible. Lender overlays are additional requirements by the lender to the minimum requirements of loan programs in order to make approved borrower less risky than by doing loans for someone with the minimal requirements. Here at Loan Consultants we want to make sure we can help nearly every borrower which is why we only work with lenders who have minimal to zero overlays.
For borrowers with existing VA Loans are in real good shape for a 2017 VA Streamline Refinance since they were already vetted and approved for a VA Loan in the first place, there is minimal documentation needed in order for them to be processed. Aside from having the minimal documentation requirements, you are also allowed to roll your closing costs into the loan so that you don’t have to come out of pocket for any expenses related to this loan. There are a few requirements for 2017 VA Streamline Refinance in order to qualify for this program and they are: Current on your mortgage with no more than one 30-day late in the last 12 months, No cash-out is received from the IRRRL or Streamline Refinance, New mortgage payment must be less than your current payment, and certification that you are occupying the property.
As you can see a 2017 VA Streamline Refinance is a great loan option for you to reduce your interest rate and your monthly mortgage payment without having to come up with a lot of documents or even closing costs to get the loan done. This is why for a veteran of the military, using your VA Loan benefits has its definite advantages than going after a loan via another program. The common rule of thumb is that if you can get an approval from another loan program like an FHA, USDA, or Conventional Loan you will almost always be able to get a better rate going with a VA Loan that you rightfully deserve. If you still aren’t 100% comfortable with the VA Loan program, please reach out to us ASAP at 888-900-1020. We look forward to hearing from you today!