Many people contact us every day asking about the highlights of the VA streamline (also known as the VA IRRRL refinance program) so we thought we would put out a simple list of the basic requirements of the VA streamline / VA IRRRL refinance program.
You cannot get any “cash back” at closing when doing a VA streamline / VA IRRRL refinance.
The abbreviation “IRRRL” stands for Interest Rate Reduction Refinancing Loan and is also commonly referred to as a “VA Streamline Refinance”.
If you currently have a fixed rate VA loan, the new interest rate on your new VA loan must be lower than the interest rate on your current VA loan at the end of the VA streamline / VA IRRRL refinance.
If you currently have an adjustable rate VA loan, your interest rate can be higher than it is now as long as your new interest rate is a fixed rate when you participate in the VA streamline / VA IRRRL program.
With the VA streamline / VA IRRRL refinance program, no appraisal is required by the VA. It is possible that certain lenders will require an appraisal for their own purposes, but one is not required by the VA.
The VA streamline / VA IRRRL refinance can be done where you don’t have to pay any “out of pocket” closing costs. All costs may be rolled into your new loan.
You may use any VA approved lender – Veterans are encouraged to shop around.