If you have a pre-existing VA loan, it’s easier than ever to refinance and get a lower payment. You can even qualify if you’re “underwater,” owing more on your mortgage than your home is worth.
How? Through a special kind of VA-to-VA refinance program called an Interest Rate Reduction Refinancing Loan, or IRRL. Under this program, you are simply refinancing from one VA loan to another, except with a lower interest rate.
Streamlined VA Refinance Loan (IRRL) Features:
• An easier, faster and convenient application process
• No verification of employment or income
• No appraisal required – homes that are considered to be “underwater” still qualify
• No income verification.
• No cash out-of-pocket required to refinance.
• Investment properties ok! As long as you previously occupied the home when you first financed it, you can be approved.
• Disabled veterans may be exempt from funding fee.
• Available throughout Orange County the state of California – from Half Moon Bay to Blacks Beach
California VA Streamline Refinance Facts
Want to lower your payments on your existing VA loan via an IRRRL VA-to-VA refinance? Here’s what you need to qualify:
• You must have an existing VA mortgage.
• A minimum credit score of 620
• 12 consecutive months of on-time mortgage payments
• No collections accounts outstanding
• No bankruptcies in the last two years.
You don’t need to get a new Certificate of Eligibility. We use your existing entitlement.
No Cash Needed to Close
A VA-to VA-Refinance loan may be processed with “no cash out of pocket.” You can roll the entire funding fee – 0.5% of the amount you are refinancing – into the new loan.
. In addition, the only other expenses are title work–required by all states, including California — and the establishment of an escrow account to pay your homeowner’s insurance and taxes.
Fixed and Adjustable Rate Mortgages
Adjustable Rate Mortgage (ARM) and Fixed Rates are available. There is a lot of flexibility in how a VA Streamline Refinance loan can be structured.
Lower Interest Rate
A California VA Streamline Refinance must result in a lower interest rate than the loan it is refinancing. An exception to this would be if the loan it is refinancing is an ARM and you are refinancing to a fixed-rate. In some cases, this may involve an interest rate increase – but you are locking in that interest rate for the life of the loan. If you remain in an ARM you are vulnerable to interest rate increases in the future. These would cause your payments to go up. So refinancing with an IRRRL VA-to-VA loan may still benefit you in the long run because it reduces your risk.
Can I Get Cash Out with a VA Streamlined Refinancing Loan?
Generally no, except for energy efficiency improvement expenses. You can’t use the VA Streamlined Refinancing program to get cash out of your home. The only debt you can refinance is the on currently on your VA-financed home, and the costs of getting the new loan.
You can, however, get up to $6,000 in cash out of the refinance if you use the cash specifically to make energy efficiency improvements to the home.
Most veterans who use this program significantly lower their monthly payments. This frees up cash, of course, which you can use for any purpose.
If you want to do a cash-out refinance, let us know. We have a number of programs and lenders who can help you achieve that objective. It just won’t be another VA loan.
Are you ready to start saving money?
Contact us for a free consultation & have all of your VA to VA mortgage questions answered today!
Or fill out our quick online application now.
No Application Fee – Ever!
Military Communities We Serve:
At Orange County Home Loans, we are proud to serve military veterans and their families with their mortgage needs anywhere in the State of California. We are proud to have VA clients with homes near the following Southern California military installations:
Lender is not acting on behalf of or at the discretion of the VA or Federal Government.