Colorado VA Streamline Refinance
The VA Streamline Refinance, also called a VA IRRRL (Interest Rate Reduction Refinance Loan), is a fast and easy way to get your VA mortgage rate and payment down. The program is designed for Veterans who are in a current VA loan at a higher than market rate, to make it easy to roll into a lower payment.
You can also get some payment relief by skipping up to two payments with this program, and the loan can be structured bringing $0 to closing. In many cases we can cover your closing costs which will result in a huge financial benefit from day one.
This program is called a “Streamline” refinance because there is no appraisal required, and no income documentation. If you are employed and current on your mortgage, you can take advantage of this program.
What is the maximum loan amount for a VA IRRRL loan?
Loan limits do apply for a VA IRRRL, mainly through caps on how much you can borrow compared to your original loan amount. The new loan amount, including any closing costs rolled into the new loan and the VA funding fee, cannot exceed 100% of the original loan amount of the loan you are paying off. County loan limits do not apply for a VA streamline refinance.
How much can I save?
Your Interest rate must go down by at least .5% to qualify for a VA IRRRL Refinance. Depending on your loan amount, even a .5% reduction in the rate can result in large savings, especially if your loan has no closing costs.
Your lender must run a “months to recoup” analysis and must determine that you will recoup the costs associated with the loan within 36 months. If the refinance doesn’t meet this requirement, you must fully qualify for the new loan by supplying income documentation.
What is a “credit qualifying” VA IRRRL vs. “non-credit qualifying?”
A credit qualifying VA streamline simply means you must supply all of the documentation normally associated with a VA loan, including income and asset documentation. This is required if you don’t meet the 36 months to recoup the costs test mentioned above, and can also be used if you want to reduce your loan term (for example from a 30 year term to a 15 year term), or convert from an adjustable rate mortgage to a fixed term.
Is there a VA funding fee?
A VA funding fee is required unless you are exempt from the funding fee. We can help you determine if you are exempt or not. If you are not exempt, luckily the funding fee on a streamline loan is only .5% and can be financed into the new loan. The funding fee is included in the 36 months to recoup calculation.
What if I want to pull cash out?
If you want to do a VA cash out refinance, you must fully credit qualify for the loan and an appraisal will be required. The downfall of a cash out loan is that the VA funding fee is 3.3% on all VA cash out refinances.
We can help you to determine if a Colorado VA IRRRL makes sense for you and what you qualify for. We are also here to provide accurate and competitive rate quotes. It doesn’t cost a penny to call, so give us a call or text at 303-670-0137, email at firstname.lastname@example.org, or fill out our fast and easy quick quote form on the side of this page.