complete 2020 va irrrl streamline & cash-out guide
Lower your payment
skip 2 payments
up to 90% cashout
late payments ok
refund of escrow
WHAT IS THE VETERANS AFFAIRS REFINACE PROGRAM?
The VA Home Loan program offers qualified homeowners with VA eligibility a simple and easy way to take advantage of lower interest rates when they become available and decrease their monthly payment. In addition to those savings, military homeowners can get cash back on a VA mortgage refinance and use the funds for a variety of purposes, from paying for home improvements to paying off credit cards and much more. The current interest rate market makes it a great time for Military homeowners to take advantage of the VA home refinance program and save thousands. To get started call 1-800-220-3544 or start your rate quote online.
The two main VA programs offered to current Veteran homeowners are the VA Cashout Refinance and the VA IRRRL Streamlined rate reduction. Both programs have unique benefits and in with the current low rates, Veterans have been able to take get a hybrid of the two programs.
VA Loans are eligible for a lower rate. Find out as soon as rates drop.
VA Streamline (irrrl)
Often called a “Streamline” refinance, the Interest Rate Reduction Refinance Loan (IRRRL) option is perfect for existing VA Loan holders who want to capture a lower interest rate and significantly reduce their monthly mortgage payments.
No appraisal required
No minimum credit score required
No income or assets required
No out of pocket closing costs
Skip up to 2 mortgage payments
Refund of current escrow balance
Up to $500 cash back at closing
VA Cash-out loan
A “Cash-out” home refinance program give Veteran homeowners the option to access up to 100% of their home’s value. Equity can be used for home improvements, emergencies, college tuition or paying off loans.
To get approved for a cash-out loan, there are 3 things that are considered: you credit, your home and your income. For credit and income we’ll get some paperwork from you, but for the home value a VA appraiser will do an inspection.
- Lower overall monthly payments
- Lower your overall interest your paying when you look at the rates of you car loans, second mortgage and high interest credit cards
- The interest on home loans is tax deductible, while interest on credit cards and car loans is not.
- Simplify by having only one monthly payment instead of multiple bills from several companies
What papers do I need for an irrrl?
The VA and Service 1st Mortgage wants all veteran homeowners to have the lowest and most manageable payment possible. That’s why we make the streamline so easy to do.
Specializing in VA IRRRLS has allowed us to fine tune the streamline refi for Veterans, making the list of docs required insanely short!
1. IDs and SS cards for anyone on the loan
2. DD-214 (member 4) or LES
3. Most recent mortgage statement
4. Homeowners insurance policy information
5. Closing Disclosure from your current loan
6. Promissory NOTE from your current loan
All documents are collected by our complimentary notary service, so you never have to fax or scan us documents… unless you want to!
is a cashout loan harder to do?
The cash-out refinance option is the easiest way to get cash at the lowest interest rate. While it’s a little more complicated than a streamline, it’s not by much and the benefits are huge!
The first big difference is the need to an apprisal. We’ll send out an official VA appraiser to come out and inspect the home and determine a fair market value.
Take the list of IRRRL docs and add the following four:
1. Two most recent months pay stubs for all borrowers.
2. Two most recent year’s W2 forms (or tax returns) for all borrowers
3. Two years of employment history and employer information for all borrowers
4. Two months of recent bank statements.
What’s a funding fee?
For all the perks that come along with a VA home loan, there are some government fees. Any fees collected by the VA goes directly to them to keep the VA home loan program operational.
VA IRRRLS require a 0.5% funding fee, which is lower than on a new purchase or any other type of VA refinance.
On a cash-out loan, the funding fee is 3.3%. Just like on an IRRRL, the funding fee can be rolled into your loan amount so you don’t pay it out of pocket. In some cases, even if you’re charged a funding fee you can get it refunded to you.
There are many situations that would get the VA Funding Fee waived for you:
- Veterans receiving VA compensation for service-connected disabilities
- Veterans entitled to receive compensation, but who are not presently in receipt because they are on active duty;
- Surviving spouses of service members who died in service or from service-connected disabilities
- …and many more!
HOW DOES IT ALL WORK?
Pick the Right Program
Speak with our team or get a rate quote online for your home loan.
Meet with a Notary
Sign off on an application and provide a short list of documentation.
Review and Approval
Our team handles all the work and gives you regular updates.
Closing and Funding
We’ll tie up and loose ends and get your loan Clear to Close!
VA Streamline FAQ
If I do an IRRRL, can I get cash out?
The VA Streamline IRRRL is designed to not have any cash out since there's no appraisal.
However, in some situations you can get up to $500 cash back.. You'll always get a refund of your escrow and 2 skipped payments which usually amounts to a couple thousand dollars.
If you want more than 2,000 to 5,000 back, look at doing a VA cash-out loan.
Can I refinance my second home or investment property with an VA streamline refinance?
In most cases, the VA allows streamline refinances on second homes and investment properties as long as the property currently has an VA loan. Some lenders only accept streamline refinances on primary residences. It’s best to ask your lender about their specific rules.
Also, if your monthly payment is increasing of the new loan type is an ARM, then you won’t be able to use a streamline refinance — they’re not permitted on second homes and investment properties.
Can I add or remove borrowers with an VA streamline?
The VA allows you to add or remove a borrower if there has been a marriage, divorce of death. Sometimes this makes no change to the paperwork, other times you'll have to look at income documentation again.
Talk to a licensed loan officer about this subject.
Can I use my VA home loan benefits for repairs?
Yes! Get a round park figure together on how much repairs would cost and give us a call. If costs are at 5K or less, we'll make it easy. If you're looking for serious improvements, you can get a cash out loan for 90% of your homes' value.
Can I fix an escrow shortage?
Yes! A great part about the VA IRRRL is that you are able to press a 'reset' button on your escrows. Any shortage will be covered in your new lower rate loan and you won't have to pay it out of pocket.
Have other questions?
Drop us a message!
rates are super low. get yours.