The VA Streamline Refinance Loan, also known as the Interest Rate Reduction Refinance Loan, allows you to refinance your mortgage to a lower rate. The VA Streamline is a good fit for Veterans and active service people who want to lower their monthly payments while saving on a lower interest rate. Furthermore, the closing costs can be rolled into the cost of the loan, so that you aren’t stuck with out-of-pocket expenses. There are a few key requirements that you must meet when applying for this loan:
- You must be current on your mortgage and no more than 30 days late on a payment within the last year.
- You must have previously lived at the home.
- The new monthly payment for the VA Streamline Loan must be lower than what you are already paying on your mortgage.
- You cannot receive any cash from the refinance.
- You must have financed the property previously with a VA Loan. This is considered a VA to VA Refinance.