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VA Loans Refinance Guidelines, Eligibility and Fees

Who is Eligible For a VA Streamline Refinance Loan?

Any Veteran or active duty military personnel that currently have a VA mortgage. Usually the current mortgage has to have at the most only one 30 day late payment.

What are the Basic Qualifications for a VA Streamline Refinance Loan?

  • VA to VA loan - Must be refinancing an existing VA loan.
  • Bad credit OK - Minimum credit score (FICO) needed is only 620.
  • Collections OK - If you have any collections you can still qualify.
  • No Income verification OK - You do not need to prove employment.
  • No Appraisal OK - Your current property DOES NOT need not be appraised.

What are the Disqualifications for a VA Streamline Refinance Loan?

  • Judgments - Must be cleared before qualifying.
  • Liens against your property - Must be cleared before qualifying.
  • Late payments - You'll be disqualified if you missed more than ONE 30 day late payment on your mortgage in the last 12 months.

Occupancy Requirement:

For IRRRLs, the veteran or the spouse of an active service member must certify that he or she previously occupied the property as his or her home. This is different than the requirement for non-IRRL VA loans that the veteran must intend to personally occupy the property as his or her home.

Maximum Loan Term:

The maximum loan term is the original term of the VA loan being refinanced plus 10 years, but not to exceed 30 years and 32 days.

Title and Lien Requirements:

  • The VA IRRRL must replace the existing VA loan as the first lien on the same property.
  • Any second lien-holder would have to agree to subordinate.
  • The borrower cannot pay off liens other than the existing VA loan from IRRRL proceeds.
  • The veteran (or surviving co-obligor spouse) must still own the property.

What are the Fees For a Streamline Refinance Loan?

There is a .5% funding fee for using the IRRRL program to refinance your home. This fee can be fully financed which means it's "rolled into the new loan amount".

This fee helps defer the cost of private mortgage insurance that would have been required had you taken out a conventional loan. Keep in mind, VA charges no monthly mortgage insurance premium, instead letting Vets pay a funding fee of .5%.

Links for additional VA Loan refinance information:

About Us:

Grove Mortgage is an VA Approved Lender and wholesale Mortgage Broker located in San Antonio Texas.

Interest rates are at historic lows, call us now and refinance with confidence.

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Additional links of interest:

VA Loans

Texas VA Loans - VA Loans In Texas

Texas Vet Loans