Mortgage loans offered through the Department of Veterans Affairs have a lot of nice features that can help eligible veterans in Florida save money and let them buy homes. One of the important benefits, though, is only available after you’ve gotten a VA mortgage.

Called an Interest Rate Reduction Refinance Loan or IRRRL, these are often referred to as VA Streamlined Refinance loans. Simply put, this program allows people with VA loans to quickly and easily refinance those loans by waiving some of the documentation that’s required for other refinance loans. It also allows borrowers to roll closing costs into the new loan, which means you may be able to refinance with no out-of-pocket costs.

Keep It Simple

If interest rates have dropped since you got your VA loan, a streamline refinance loan lets you refinance to the lower rate and save money. Since you’ve already been approved by your VA lender for your original loan, the refinancing process is relatively simple, requiring less than a month in many cases. To qualify for an IRRRL, there are some conditions:

  • You must have used your VA loan eligibility to obtain the mortgage you want to refinance.
  • You must certify that you previously occupied the property.
  • Your new monthly payment must be lower than your old payment (unless you’re switching from an adjustable-rate mortgage to a fixed-rate mortgage).
  • You must be current on your mortgage, with no more than one late payment in the last year.

In addition, you can’t receive any cash when you refinance your loan with an IRRRL. There is an exception to this; some borrowers can get up to $6,000 to reimburse them for energy-efficient home improvements that were made in the three months prior to closing. There is another type of VA refinancing loan that allows you to refinance while taking cash from your home’s value, similar to a home-equity loan. Called a VA Cash-Out loan, it requires you to have sufficient equity in your home to qualify for this program, and it must be used for a home you occupy.

Find Out More

You don’t have to use your current lender for a VA Streamline Refinance, and sometimes it’s better to shop around, since different lenders offer different terms. It helps to work with a lender that’s experienced in VA Streamline Refinancing, like Embrace Home Loans. We’re experts in Florida VA mortgages, and we can help you review your refinancing options and work with you to get the best deal for you. Call us today at 407-733-6425.

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