Eligible veterans and active military members in Florida can take advantage of the Department of Veterans Affairs (VA) Interest Rate Reduction Refinance Loans (IRRRLs) to lower their interest rates and mortgage payments on their VA mortgages. Increasing numbers of Florida veterans are doing so. In fact, IRRRLs in Florida increased by a whopping 83.5 percent from 2014 to 2015, with 10,582 loans issued in 2014 and 19,419 loans issued in 2015.

The current low-interest rate is fueling this dramatic increase in VA refinance loans, but there are other reasons that eligible veterans and military personnel are rushing to refinance their home mortgages. VA refinance mortgages are called “streamline” loans because many of the traditional refinancing documentation isn’t required. That makes the VA IRRRL a fast and efficient option for VA mortgage refinancing.

VA Streamline Refinance Advantages

A VA IRRRL doesn’t require a property appraisal like many other mortgages do. And VA lenders aren’t required to get credit reports, set minimum credit scores, or verify income or savings. However, many VA lenders have internal policies for credit scores, some as low as 580 and credit reports to verify mortgage payment history only. The good news is that these requirements are typically much more lenient than those for other mortgages.

Other advantages include the fact that VA refinances allow the borrower to close the refinance loan without any out-of-pocket costs since the VA allows origination fees, VA funding fees, closing costs, and other costs to be rolled into the new refinance loan.

Benefiting You

The main rule that VA streamline refinance loans must follow is that the new loan must benefit the veteran. Obviously, lower interest rates and mortgage payments do benefit the veteran, but there are other benefits that veterans can pursue, including converting from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or getting cash (up to $6,000) for energy-efficient improvements to the home. If you’ve got a VA mortgage in Brevard County or elsewhere in Florida, Embrace Home Loans can work with you on a VA streamline refinance. Call us today at 407-733-6425.