If you have an existing VA loan and want to refinance into a lower rate or get out of your adjustable rate mortgage and lock in a permanent one, go right ahead. Really. Even if you think you may no longer qualify. If you’re in a situation where you originally qualified for the VA home loan when you bought the property yet something has happened with your job and you don’t bother applying, then you haven’t heard of the VA streamline refinance.
Referred to by the VA as the Interest Rate Reduction Refinance Loan, or IRRRL (don’t you just love government acronyms?) but what lenders call the VA streamline refinance, this program allows borrowers to refinance into a lower rate or out of either an adjustable rate mortgage or a hybrid into a lower, fixed rate loan. However, the VA streamline refinance doesn’t have the same qualifying requirements as the VA loan used for a purchase. What guidelines are relaxed?
More than relaxed, the VA streamline refinance doesn’t require the borrower to provide evidence of any income. No pay check stubs, no W2 forms and no income tax returns. What that means to veterans with an existing VA home loan whose income has been reduced or temporarily suspended due to unemployment, illness or other factor beyond the borrower’s control, lowering the monthly payment is still possible. You don’t need any bank statements and there is no minimum credit score requirement.
As long as you are current with your existing VA home loan and no more than one payment more than 30 days past the due date within the previous 12 months, you may be eligible for a refinance after all. If you’re one of those who initially qualified but thinks they no longer can due to income or credit issues, contact a qualified VA loan officer and take advantage of the VA streamline refinance program.