VA home loans were originally designed to help returning soldiers from WW II to more quickly assimilate to civilian life and more importantly as a “thank you” for their service. The zero down payment loan with reduced closing costs and easier qualifying is a benefit that veterans earn; it’s not simply handed out. And the advantages don’t stop when a VA loan is used to finance a purchase but also when refinancing an existing VA loan.
When refinancing a VA loan, it’s most always with the “streamline” method. The official name of a VA refinance is the Interest Rate Reduction Refinance Loan, or IRRRL but most VA lenders simply refer to it as a VA streamline when an existing VA loan is refinanced into yet another one.
A VA streamline is so-called due to the reduction in paperwork required to approve the mortgage. A streamline refinance doesn’t require evidence of employment or pay check stubs. There’s no need for an appraisal or review a credit report. This reduced documentation means VA streamline refinance loans are closed quickly and efficiently. Conventional loan programs don’t have such features.
If you have an existing VA loan and are perhaps a bit reluctant to make a move due to the amount of paperwork involved, take heart; the VA streamline is essentially stress-free.
