VA refinancing can be a great option to help Sarasota home owners reduce their monthly mortgage debt and save money. In addition to the streamline refi options, VA has a wonderful cash out refinance that allows up to 100% loan to value. The Department of Veterans Affairs provides options to do both, a VA Streamline Refinancing loan or VA Cash-Out Refinancing loan. Below will take a closer look at the VA streamline refinance qualifying criteria and some benefits for Sarasota home owners that have a VA loan.
VA home owners that have questions can us at ph: 800-743-7556 or just submit the quick Info Request Form here and a VA loan specialist will contact you 7 days a week. VA Mortgage Hub is Florida local VA loan leader, serving all of Florida including Sarasota and Manatee County – Laurel, Nokomis, North Port, Osprey, Sarasota, Venice, Bradenton, Longboat Key, Myakka City, Palmetto and Parrish.
Basic VA Streamline Refinance Qualifying Criteria:
In order to qualify for a VA streamline refinance, you must meet the following requirements:
- On time mortgage payments with no more than one 30 day late pay within the past 12 months.
- The new VA monthly mortgage payment must be lower compared with the original VA mortgage payments prior to the refinance (often the case when switching from an adjustable rate mortgage (ARM) to a fixed rate mortgage).
- Cash Out not permitted on the IRRRL or Streamline program, only the cash out program.
- The property in which you choose to refinance must be the one that you previously uses your VA entitlement for.
The VA streamline refinance is also known as the VA IRRRL program (which stands for Interest Rate Reduction Refinance Loan) and they are the same program.
VA Streamline IRRRL General facts and Guidelines.
- The VA streamline has less documentation than a regular refinance which means you can close fast.
- Many time we can do VA streamline without requiring an appraisal, saving the home owner money. However, the VA cash out program will always require a new appraisal.
- Most the time borrowers can roll all closing costs and fees into the new loan so there are no out-of-pocket costs when doing a VA streamline.
- One rule for the VA streamline is that the new monthly payment must be lower than the previous loan’s monthly payment. One exception to this rule is when you are refinancing an adjustable-rate mortgage and the new loan term is less than the old one.
- Your new VA interest rate must have a lower interest rate than the previous loan. An exception is if you are refinancing from an adjustable-rate loan – like 5/1 ARM into a 30 year fix.
- With the VA streamline program, your new loan can be a fixed-rate or adjustable-rate loan.
- Your monthly mortgage payment may increase if you finance energy-efficient home improvements, finance your closing costs including the funding fees, finance points, or get a higher interest rate if you move to a fixed-rate loan.
VA Mortgage Loan Underwriting Requirements
VA mortgage loan underwriting requirements for both purchase and refinance are focused on the borrower’s credit and income, but also include provisions designed to ensure the applicant will use his or her loan for purposes approved by the VA. The VA has certain underwriting requirements, and lenders typically supplement these with their own requirements as well. An example of VA underwriting requirements is that applicants must live in the property within a certain period of time after closing, and use the property for approved purposes. Additionally, lenders may require a minimum credit score to qualify for a loan, generally a 600 score.
As for what property a borrower can purchase with a VA mortgage loan, borrowers can use these loans to purchase existing single-family houses, but that’s not all. Other approved uses of a VA mortgage loan include:
- VA purchase of an approved town home or condominium
- Finance of custom home construction
- Home improvements, repairs or upgrades, including “green” upgrades
- Refinance of an existing loan to lower interest rates or monthly payments
Loan approval essentially requires the borrower to be a good credit risk and able to repay the loan. The property must meet the VA home standards, otherwise known as VA minimum property requirements. Homeowners in Sarasota or Manatee county can call us at 800-743-7556 with questions. Serving all of FL – Laurel, Nokomis, North Port, Osprey, Sarasota, Venice, Bradenton, Longboat Key, Myakka City, Palmetto and Parrish. Sarasota VA IRRRL Streamline Refinance