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Help Your Military Homeowners Free Up Cash: VA Streamline Refinance

April 5, 2012

Do you have customers who bought their home with a VA loan?  Then they may qualify for an even lower-rate VA loan that can reduce their monthly payment or move them from an ARM to a fixed rate loan. It requires minimal paperwork and offers more relaxed underwriting standards than conventional loans, making it a great financial tool for active military and veterans.

The VA refinance program goes by several names: Interest Rate Reduction Refinancing Loan (IRRRL) or more simply, Streamline or VA to VA. Whatever you prefer to call it, it’s one of the most attractive loan programs on the market.  In fact, from 2010 to 2011, the volume of VA refinances grew by 41%, spurred, in part, by historically low rates.

The main criteria for a VA Streamline is that it must reduce the borrower’s interest rate and monthly costs with two exceptions: refinancing from an adjustable rate mortgage to a fixed rate or choosing a shorter mortgage term.

VA Streamline Benefits:

  • Closing costs, including the VA Funding Fee of ½ percent of the mortgage, can be rolled into the loan if a new appraisal is done.
  • If the VA loan is already serviced with us, no appraisal is needed.
  • 100% financing available, up to $417,000 in most states. Your loan officer can confirm for specific situations.
  • There’s no income or employment verification in most states, so underwriting is simpler and faster.
  • Credit score of 640 or higher qualifies. The homeowners must also have no late mortgage payments for the past 12 months.

Military homeowners and qualified veterans can save money on their housing costs, freeing up cash for other expenses, which is a welcome option in these economic times.

Your loan officer is an expert in working through VA Streamlines, and can ensure it goes as smoothly as possible. Let us help your military clients cut their expenses with a VA Streamline!

Source: veteransunited.com

From Loan Officer Eddie Kirby

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