VA Streamline Refinance Loans:
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VA streamline loans: What is an IRRRL?

A VA streamline loan is a specific type of VA loan designed to help eligible veterans achieve one major goal: to reduce the interest rates on an existing VA mortgage. Sometimes referred to as a VA IRRRL (Interest Rate Reduction Refinance Loan), VA streamlines may also be called VA-to-VA loans.

VA streamline refinance (IRRRL) transactions are the most common type of VA loan. They are highly favored by homeowners who are already utilizing their earned VA home financing benefit and who simply want to reduce their monthly mortgage payments by obtaining a lower interest rate.

IRRRL VA Streamline Refinancing Benefits:

• IRRRLs usually close more quickly than other loan types
• Less paperwork than other types of VA loans
• No home appraisal is required for a VA streamline loan
• Minimum credit score requirement of just 550 (less-than-perfect credit OK)
• No income or employment verification is required on a VA streamline refinance
• NLC Loans™ has fewer lender requirements (overlays) on VA IRRRLs than many other VA-approved lenders

VA IRRRL REFINANCE FAQs

Do I Have to Live in the Home to be Eligible for a VA Streamline Refinance?

Unlike first-issue VA loans used to purchase a home, the homeowner does not have to currently live in the home they wish to refinance with a VA streamline loan. The only occupancy requirement for an IRRRL is that the borrower must prove that they did, indeed, reside at the property in the past.

Can I Get Cash Out with a VA Streamline?

Since VA to VA refinance loans (IRRRL) are designed solely to help military and veteran homeowners save money on their monthly mortgage payments by reducing their VA loan interest rates, this loan type does not allow any equity cash-out. However, this can provide the opportunity for additional savings since only the previous loan balance (total home value less the homeowner’s equity) will need to be refinanced.

Homeowners looking to obtain money to pay off credit card debt, make home improvements, save for college, create retirement savings or for any other reason may be able to take cash out when they refinance with a traditional VA loan.

Can I Get a VA Refinance if I Missed Mortgage Payments?

VA streamline refinance loans are not available for homeowners who have been more than 30 days past-due on their mortgage payments at any time within 12 months prior to their VA loan application. Late payments that occurred more than 12 months ago are not considered in the VA loan approval process. 

As a result of refinancing, your total finance charges may be greater over the life of the loan. Ask your NLC Loans Personal Mortgage Advisor for more details.