289003278

VA Refinance Loan FAQ

09.15.2020 | Category: Homebuying

What is a VA streamline refinance?

The VA streamline refinance loan is also known as the VA IRRRL. The VA streamline refinance is often a simple loan process because the borrowers are refinancing from one VA mortgage loan to another VA loan. This loan is often also referred to as VA-to-VA Loan. A VA streamline refinance is not available to homeowners who do not currently have a VA mortgage loan. The VA streamline refinance loan does not require that the borrowers occupy the home which is currently financed with a VA mortgage product.

What is a VA IRRRL?

The VA IRRRL loan is also known as the VA refinance or the VA streamline refinance. The acronym IRRL stands for interest rate refinance reduction loan. The VA IRRRL loan or VA streamline refinance is a special type of refinance loan made available by the VA Loan Guaranty program. The VA IRRRL loan is a fixed-rate refinance loan program. This loan is ideal for homeowners who currently have a VA mortgage loan who are looking to lower their monthly interest rate.

Can you refinance a VA loan?

Yes, if you are currently a homeowner whose property is financed via a VA mortgage loan you can apply for a conventional, FHA or VA refinance. Depending on the rate and terms a borrower is seeking, they have the option to review any type of refinance loan to replace their current VA mortgage loan.

How soon can you refinance a VA loan?

Depending on the level of risk associated with a borrower, most lenders would typically require the homeowner have their current VA mortgage loan for a minimum of 12 months prior to applying for a refinance. Payment history is one of the most crucial factors in determining a borrower’s risk level for a VA refinance.

Can I refinance my mortgage with a VA loan?

Yes, if you are actively serving military, honorable discharge, veteran or the surviving spouse of any of the previous who is currently the borrower of a VA home loan you may refinance your property with a VA streamline refinance or VA IRRRL loan. The VA streamline refinance or VA IRRRL loan is only available to homeowners who currently have a VA mortgage loan. VA refinance loan products are not available to civilians or the general public.

Can I refinance a conventional loan to a VA loan?

Yes, a borrower who is eligible for VA benefits can refinance from a conventional loan to a VA loan. Although this is not typical, there is no restriction that prevents this. To be eligible for a VA loan a borrower must be actively serving in the U.S. military, honorable discharge, veteran or the surviving spouse. If a borrower who currently has a conventional loan opts to refinance with a VA loan the loan process could take longer than average because different documentation will need to be reviewed that was not previously received and underwritten by a VA approved lender.

When to refinance VA loan?

The decision to refinance a home should not be taken lightly. It is important for a homeowner to evaluate and determine their financial goals. If a homeowner is seeking the opportunity to lower their monthly interest rate or transition from an adjustable rate mortgage loan to a fixed rate program, then a refinance could be a great opportunity. Speaking with an experienced loan originator can help a borrower review their income, assets, and debt to determine if a refinance is the right decision.

How long does it take to refinance a VA loan?

TIf a VA borrower uses the VA IRRRL loan or VA streamline refinance, the entire process can be completed in 30 to 45 days. Although the VA streamline refinance or VA IRRRL loan does not require income verification, in order for the VA refinance process to move forward, a borrower must have the following qualifications:

  • VA Loan eligibility of the borrower must have been used on the property intended for refinance
  • Most recent two years of W-2 statements to establish income
  • Ability to document current or previous occupancy of the property
  • Confirmation of currency on mortgage payments or no more than one late payment in the last 12 months

Related Articles

296514422 Article 7 Signs You’re Ready to Buy Your First Home Buying your first home is probably one of the most difficult and most expensive purchases you’ll make in your life. But if you make the right choices, plan ahead, and understand all your options, it should be one of the most infrequent purchases you make. Read More
316583335 Article 10 Tips for First Time Home Buyers You Probably Didn't Know (But Should) The time has come. You’re ready to make the transition from renter to homeowner, but aren’t sure where to start. With so many types of homes and loan options, crossing the finishing line and closing on your dream home can seem like a daunting task. Take a look at our top 10 tips to make your life as easy as possible during the home buying process. Read More
208237543 Article How To Use Your Mortgage To Pay-Off Your Debt As average mortgage interest rates decline to record lows, many homeowners are taking advantage of the benefits a refinance can provide. If you are a current homeowner, there is a strong possibility that you could save with a refinance. Review this guide to learn more about the ways a refinance mortgage loan can help you consolidate debt. Read More

Why choose Mutual of Omaha Mortgage for your home loans?

The confidence of a name trusted by millions of customers over 100 years

Personalized service through the loan process forms an experienced mortgage expert

Manage the entire loan process from anywhere with our easy-to-use mobile app