A guest post by Robert from VAloansguidelines.com:
With interest rates hovering near record levels, thousands of veterans and their families are taking advantage of refinancing options provided by the Veterans Administration. Even veterans who purchased their home with a conventional loan can capitalize on the VA’s flexible and low-cost refinancing programs.
The agency’s most popular and common refinancing option is known as the VA Streamline – its technical name is an Interest Rate Reduction Loan, or IRRL.
These are no-frills loans that aim to help veterans and their families take advantage of fluctuating rates. With big changes headed for the FHA’s Streamline refinance program, the VA will soon have the last truly “streamlined” refinance option in the country.
VA Streamlines come with a host of significant benefits, including:
*No credit checks
*No out-of-pocket costs
*Qualifying debt ratios
In order to qualify for a VA Streamline, veterans must be current on their VA loan and have made no more than one 30-day late payment in the last year.
Veterans do not need perfect credit to qualify. In fact, qualified veterans don’t need to worry about appraisals, income verification and credit qualification for a VA Streamline.
Any commercial lender can provide a VA Streamline, so the VA encourages veterans to get multiple quotes and shop around. Veterans can also roll their out-of-pocket costs into the new loan, including the agency’s funding fee.
One thing veterans and their families can’t get from a VA Streamline is cash. But the VA does offer a Cash-Out Refinance loan for veterans in need of capital. This program gives veterans the opportunity to refinance up to 100 percent of their current loan to value.
The VA also offers veterans with current conventional loans the opportunity to hop onboard. Qualified veterans can refinance their conventional loan into a VA loan – up to 100 percent of the home’s value.