Learn about VA, FHA, and Streamline Refinance Options
Many home owners are currently paying for mortgages that carry interest rates that are higher than they should be. National interest rates have continuously dropped and many people have saved significant amounts of money each month with a streamline refinance.
If you already have an FHA or VA home loan, then you might be eligible to save money with a streamline refinance loan option. This type of refinance is dubbed the “streamline” because the refinance process is much simpler than a standard home refinance. This type of refinance uses your original home loan paperwork to reduce hassle and time.
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Benefits of a Streamline Refinance
Quicker & Less Paperwork!
- Lower your mortgage interest rate to lower your overall monthly payment
- Refinance quickly and easily with minimal required paperwork
- Possibly save significant money over the life of your loan
A very pleasant experience… and we’re saving money!
Each home owner’s individual financial situation is different, and the results of a streamline will differ for each home owner. Learn more about the great benefits of a streamline refinance.
What is a Streamline Refinance?
Simply put, a home loan refinance is a new mortgage loan that replaces an existing one. In fact, a refinance can replace more than one loan if you have multiple homes on one property. The borrower completes a loan application for a refinance in much the same manner as a mortgage used to purchase a property. The borrower will be evaluated in terms of credit, income, and assets as well as a review of the property. The exception is when the borrower is eligible for an FHA or VA streamline refinance, in which case the borrower may be exempt from some of the underwriting requirements.
Reasons to Refinance
Some of the primary reasons a home owner would refinance include:
- Lower your monthly interest rate
- Change your loan term
- Change the loan type
- Receive cash out from your home equity
There are many reasons to refinance, and different benefits and options when it comes to refinancing your home.
Home Refinance Options
There are many refinance types to choose from when considering a home refinance. The streamline refinance is perhaps the most popular form of refinance due to the ease of qualifying and the reduced documentation requirements. Streamline refinance loan programs are available for borrowers who have government-backed loans underwritten to the VA, FHA, or USDA lending guidelines. Conventional loans underwritten to Fannie Mae or Freddie Mac standards do not qualify for a streamline refinance, but conventional refinance options are available.
The VA streamline loan is the common name for what the VA calls the Interest Rate Reduction Refinance Loan, or IRRRL. This special streamline loan program is available to borrowers who currently have a VA mortgage and wish to reduce their interest rate or switch from an adjustable rate loan to a fixed. Special features of the VA streamline program require no credit check, no documentation of income or employment verification. In addition, there is no requirement for an appraisal to be performed in order for the VA streamline loan to be approved. Learn More.
The Federal Housing Administration, or the FHA, has their own version of the streamline refinance loan and is also the most popular form of FHA refinance programs. The FHA streamline loan is designed to facilitate the refinance process for the borrower, requiring less documentation compared to a traditional FHA home loan. As long as the FHA streamline refinance provides a tangible, net benefit to the borrower and there is no cash back during the transaction, the refinance is eligible for the streamline process. Learn More.
USDA Streamline Loan
A recent entry into the streamline refinance process is the USDA streamline loan. Although the USDA home loan program has been around in various forms for decades, the USDA streamline has only been in existence since 2012 and is primarily a pilot program available in a few, select states. The USDA program allows current USDA borrowers to refinance into a lower rate USDA loan without the need for a credit report or appraisal. Should the pilot program be deemed a success, the USDA streamline program will be expanded to include the rest of the country.
Starting your Home Loan Refinance
Streamline loans are designed for one purpose: provide an efficient, inexpensive method to take advantage of a low-rate environment. As long as the borrower and the loan meet basic guidelines, a streamline is an attractive option. Get started on your streamline refinance today. Fill out the form to speak with a lender who can help you learn more about your refinance options and see if you can save.