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Interest Rate Reduction VA Loan Program
The VA has created an Interest Rate Reduction Loan program called the Streamline Refinance.
This provides a way for current VA homeowners to lower their interest rate with little or no
out-of-pocket costs. These loans can also be made faster and with less documentation than a
typical loan.
An Interest Rate Reduction Loan or Streamline Refinance allows you to refinance your current
mortgage interest rate to a lower rate than you are currently paying. This is only available
to veterans who are refinancing their original VA mortgage and utilized their original
eligibility.
"No Cost" Streamlines let you refinance your mortgage with no out-of-pocket expenses.
One option is to let the lender pay the costs in exchange for a higher interest rate.
Another option that lets you obtain market rates is to roll the closing costs into the
new loan.
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- No assumptions are allowed.
- The veteran cannot receive any cash back.
- VA does not require an appraisal, any income or employment verifications, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing.
- Any other liens must be subordinated to the VA loan.
- This loan can be done with "no out of pocket money" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
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FREQUENTLY ASKED QUESTION # 18 [ -more VA Loan questions- ]
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Q: VA Loans and Rental Properties - Can I use my VA loan to buy a rental property?
A: The idea of buying a building intended as a rental property is sound-but VA mortgages aren't intended for this purpose. If you buy a home with a VA home loan, you must certify that you intend to "personally" live in the house. There are naturally exceptions made for houses that are in the building stages when the sale is made, but the general rule is you must occupy the house within sixty days of the loan closing. The occupancy requirement applies to all VA guaranteed loans except one; the Interest Rate Reduction Refinancing Loan or IRRRL. For these loans, the veteran is required to certify that the dwelling was previously occupied as the home.
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VA Loan Rates
for 12/02/2008
30 year fixed
-----------------
0.000 points
5.500%
5.610% APR
15 year fixed
-----------------
0.000 points
6.500%
6.694% APR
Life Insurance for Military Members
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