Requirements for VA Streamline Mortgages

Veterans who want to refinance their existing mortgages may qualify to take advantage of an Interest Rate Reduction Refinancing Loan (IRRRL), commonly known as a VA Streamline mortgage. Generally, your repackaged loan must carry a lower interest rate than the original mortgage.

Function

Your lender may require a home appraisal and a credit report as part of the refinancing process. If you refinance from an adjustable rate mortgage into a fixed rate loan, your new rate may not be lower than your current ARM rate.

Benefits

Shop for the best rates for your VA streamline loan wherever you wish. You are not required to refinance with the original issuer of your mortgage.

Features

The Veterans Administration does not charge fees other than a funding fee of one-half of 1 percent of the loan amount. Other fees charged by your lender may be negotiable.

Considerations

You may not take cash as part of the proceeds of a VA Streamline loan. The VA Streamline loan is only available to refinance and existing VA approved mortgage.

Energy Improvements

You are entitled to add as much as $6,000 to the total streamline loan to make energy-efficiency improvements to the property.

References

• Department of Veterans Affairs

Resources

• Veterans Administration Home Loan Program information