The VA loan program is a special government mortgage program for active military personnel and military veterans. There are several advantages to VA loans that can’t be found in other loan programs.
A VA to VA refinance (IRRRL)
While sometimes referred to as a VA streamline loan, the technical name for a VA to VA refinance is an IRRRL, which is short for “Interest Rate Reduction Refinance Loan”. An IRRRL has most of the benefits of an FHA streamline with a few differences. Here are some of the features:
- No appraisal required
- No income or asset verification required
- No out of pocket expenses required
- Only a small VA funding fee
Assuming you can lower you interest rate, in most cases a VA to VA IRRRL refinance makes a lot of sense. The IRRRL process is faster and easier than other types of refinances and the costs are low. Contact us in the sidebar today if you have a VA loan now to get more information on an IRRRL refinance.
A non-VA to VA refinance (including VA cash out)
Refinancing from a conventional or FHA loan into a VA loan can make sense in some cases. When moving in to a VA loan the costs tend to be higher than with IRRRL’s and income and asset verification are required as well as an appraisal. The most common reason to refinance from a non-VA loan into a VA mortgage is to get cash out. The VA allows cash out up to 100% of the appraised value of the home and there is no monthly mortgage insurance fee with VA loans. Contact us to learn more about that.
VA home purchase loans
VA loans are an excellent home purchase program. Unlike conventional or FHA loans, there is no downpayment required for VA home purchase loans and no ongoing monthly mortgage insurance. If you are VA eligible and considering purchasing a home, contact us right away.