The VA started the Interest Rate Reduction Refinancing Loan (IRRRL), otherwise known as the Streamline Refinance, to help veterans secure the lowest interest rates available. At First Savings Bank we can provide the information and tools you need to take advantage of your benefits as a veteran.
How It Works
A VA streamline refinance allows veterans who currently have a VA home loan to refinance to a lower interest rate without an appraisal or any kind of income verification. It is also possible to do this with a less-than-perfect credit score, and the process can usually be done in about 3-4 weeks because it is a comparatively simple process that requires little effort from the veteran.
When a veteran refinances this way, it is an opportunity to take advantage of lower interest rates. You can refinance your mortgage without any out-of-pocket expenses. There are two ways a lender can help you refinance. One: you take a slightly higher interest rate and the lender will pick up the costs. Two: you can take the lowest possible rates and then just roll in the leftover fees and pay it all together.
Veterans have a number of options for this kind of refinancing. The first choice that must be made is between fixed rate or hybrid loans. These options both have some benefits, and the most important thing to consider is the time frame you realistically expect to keep the loan or the house. If you think you will refinance again down the road, this could have a big impact on your choice.
The other option is to determine the term of the loan – 12, 20, 25, or 30 years. Your choice will depend a lot on your financial situation, so be sure to contact one of our approved VA lenders for a consultation and they can help you make the best decisions based on your needs and circumstances.
100% VA Streamline
The Veterans Administration has a 100% VA streamline refinance program which means that you can refinance for the full amount that you owe on your house without another appraisal. This also means you can lock into the current low interest rates, which is extremely important with so many people currently underwater on their mortgage.
Some of the benefits of a 100% VA streamline loan include:
- No income verification is needed if your payments are current
- No appraisal is needed on the property
- Low credit scores are eligible
- A 100% VA streamline refinance will allow you to skip at least one but usually two full mortgage payments
- You will be refunded your current escrow account that is usually $1000 or more
- You get locked into the lowest rates in decades
Low Credit Score VA Streamline
Most lenders will not do a VA streamline unless your credit score is above 640, but we have options even if your credit is less than perfect. Interest rates on VA streamline fixed rates and ARMs are at all time lows, so contact us today and take advantage of these loan options.
Get your No Obligation refinance quote from a VA loan specialist who understands how to get a low credit score approved. We can help you learn more about streamline refinancing and how it can benefit you. If you have any questions, concerns, or are ready to save some money today please call us toll free at 888-407-0010.