Toll Free Today
888.420.7895
California VA Streamline Refinance With today's low interest rates, now may be the perfect time to streamline refinance your current VA home mortgage loan. The process is simple.
An IRRRL cannot be used to take equity out of the property or pay off debts, other than the VA loan being refinanced. Loan proceeds may only be applied to paying off the existing VA loan and to the costs of obtaining or closing the IRRRL. Therefore, the general rule is that the borrower cannot receive cash proceeds from the loan. If necessary, the refinancing loan amount must be rounded down to avoid payments of cash to the veteran. The one exception is reimbursement of the veteran for the cost of energy efficiency improvements up to $6,000 completed within the 90 days immediately preceding the date of loan closing.:
The mortgage to be refinanced must already be VA insured.
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.
CALL TODAY 888.420.7895
What is a VA IRRRL?An IRRRL is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing VA loan. Generally, no appraisal, credit information or underwriting is required on an IRRRL, and any lender may close an IRRRL automatically.
Apply Online.
Interest Rate Decrease Requirement.An IRRRL (which can be a fixed rate, hybrid Adjustable Rate Mortgage (ARM) or traditional ARM) must bear a lower interest rate than the loan it is refinancing unless the loan it is refinancing is an ARM. The principal and interest payment on an IRRRL must be less than the principal and interest payment on the loan being refinanced unless one of the following exceptions applies, the IRRRL is refinancing an ARM, the term of the IRRRL is shorter than the term of the loan being refinanced, or energy efficiency improvements are included in the IRRRL. A significant increase in the veteran’s monthly payment may occur with any of these three exceptions, especially if combined with one or more of the following, financing of closing costs, financing of up to two discount points, financing of the funding fee, and/or higher interest rate when an ARM is being refinanced.
Apply Online.
No additional charge is made to the veteran’s entitlement for an VA Streamline IRRRL; such as, the amount of the veteran’s previously used and available entitlement remains the same before and after obtaining the IRRRL. The new IRRRL loan amount may be equal to, greater than, or less than, the original amount of the loan being refinanced. This may impact the amount of guaranty on the new loan, but not the veteran’s use of entitlement.
