For military borrowers, refinancing your VA loan is a good way to lower your interest rate, thereby lowering your mortgage payment and putting more money in your pocket every month. When it comes to refinancing a VA loan, one of the best tools for this is the VA interest rate reduction refinance loan (IRRRL), also known as a VA streamline refinance. The IRRRL can be a great financing tool for veterans looking to refinance their homes for a lower interest rate.
Qualifying for an IRRRL
With an IRRRL, veterans can refinance their homes without an appraisal or credit underwriting package. In some cases, the loan can be structured for the veteran to refinance with no out of pocket costs. This is accomplished by bundling those costs into the new loan, or setting the interest rate slightly higher; for many military borrowers, these are welcome conveniences.
Questions on VA Streamline Refinance
Understandably, borrowers tend to have questions regarding the ins and outs of refinancing; refinancing your VA loan is no exception. Here are some of the most frequently asked questions on the IRRRL loan, otherwise known as a VA streamline refinance.
Q: Can I refinance my adjustable rate mortgage VA loan into a fixed rate loan using an IRRRL?
A: Yes! In fact, the most important benefit of an IRRRL is streamlining your VA loan to current low rates. The interest rate may increase, but many homeowners find that a slightly higher interest rate is easier to live with than the unpredictability of an adjustable rate mortgage.
Q: Can I get cash out from a VA streamline refinance?
A: No, the VA does not allow borrowers to receive any cash out from IRRRL proceeds. The primary benefit to homeowners is the lower interest rate, because it saves them money every month on their mortgage payments.
Q: Can any lender I choose process my VA streamline refinance application?
A: Yes! No lender is required to approve you for an IRRRL, but any lender of your choosing may be asked to do it. Wholesale Capital Corporation has helped many veterans refinance with a VA streamline refinance loan; contact us to speak with a loan officer if you are interested.
Q: Do I need a Certificate of Eligibility (COE) in order to qualify for an IRRRL?
A: No, the VA does not require borrowers to present a Certificate of Eligibility for a VA streamline refinance. The certificate you showed to qualify for your first mortgage is sufficient.
Q: Can I refinance a home that I still own, but no longer live in?
A: Yes! For a VA streamline refinance, you are only required to certify that you previously occupied the home. The owner occupancy rule only applied to your first VA mortgage.
Finding Out More
If you are a military borrower in California or Arizona interested in refinancing your VA loan, Wholesale Capital Corporation has loan officers who can answer your questions. Contact us at (855) 640-2020 to inquire about the VA streamline refinance loan, a valuable mortgage refinancing tool for military veterans.
Wholesale Capital Corporation is not affiliated with or acting on behalf of or at the direction of the Federal Housing Administration (FHA), Department of Veterans Affiairs (VA) or any government agency/government-sponsored entity. WCC is licensed by the California Bureau of Real Estate, Broker License #01147747 and CA Finance Lender’s License #603K610. Also licensed in Arizona by the Arizona Department of Financial Institutions, MB #0926199. Equal housing lender.