Veterans are given several options by the government to help reduce their mortgage costs, but for many retired service members their first choice is often a VA streamline refinance loan. Also known as the Interest Rate Reduction Refinance Loan or IRRRL, the VA streamline refinance loan program is quite popular amongst veterans not only for its very low interest rates but also being very lenient when it comes to requirements. But despite this, applying for VA streamlines refinancing is far from being a walk in the park. So for service members interested in applying for VA streamline loans, you will need to meet the following requirement first in order the loan application to be approved.
The first and probably most important requirement in getting a VA streamline refinance loan is that the borrower must be an active-duty or honorably discharged service member that has served at least 181 days during peacetime, 90 days during war time, or 6 years in the National Guard or the Reserves. So unless they meet the minimum number of days, a service member will not be able to avail of the program. In addition, spouses of service members killed in the line of duty are also eligible for VA streamline refinance.
Aside from the prescribed days of service, the VA streamline refinance loan also requires a service member to be current on their mortgage with no more than one 30-day late payment within the previous year, certification that the service member has previously occupied the properly, and that VA loan eligibility has been used on the property to be covered by the loan. The program also requires that the monthly payment for the VA streamline refinance program should be lower than that of the previous loan’s monthly payment, although this is waived if an ARM to a fixed rate mortgage will be refinanced.
The best possible way to get the best deal on the VA streamline program is to shop multiple lenders who are VA approved and get a written quote from each one. Once you have a written quote from several lenders, then it is easy to compare and see who has the best offer. Each VA lender will have their own set of rates, fees and guideline overlays – so picking the right lender for your situation is very important because one size doesn’t fit all.
Get a free quote on a VA streamline refinance today – getting started is free, easy and only takes a couple of minutes.