Updated January 2017
VA streamline loans, or Interest Rate Reduction Refinance Loans (IRRRLs) are a fantastic value for veterans who qualify for them. You may be eligible for VA loan benefits if you served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and were honorably discharged.
In addition to being fast and easy to get, the IRRRL requires little documentation from the borrower. Some of the documentation that the VA waives is income verification, credit reports and an appraisal (although some lenders do require an appraisal, along with credit scores).
One document you should know about is the Certificate of Eligibility. What is a Certificate of Eligibility? It is called a Form 26-1880 for VA loans. When you got your original VA loan on your property, you had to have a Form 26-1880 to prove your VA eligibility.
This form shows you used your entitlement to purchase your home with a VA loan. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan.
Because the VA streamline refinance loan is a “VA to VA” loan, meaning it can only be applied to a pre-existing VA loan, you have already used a Certificate of Eligibility for a VA loan on the property you are wanting to refinance.
If you have your VA Certificate of Eligibility, it will show that you have used your entitlement. However, if you don’t have your VA Certificate of Eligibility, lenders can use the VA’s e-mail confirmation procedure for the IRRRL in lieu of a certificate of eligibility.
The good news for veterans is that the IRRRL is a fast, easy way to refinance their VA loan. It can lower both interest rates and monthly mortgage payments. If you are a vet with a VA loan, an IRRRL may be a good way to reduce your bills and pay your home off earlier.
With Automated Certificate of Eligibility, we can order your Certificate of Eligibility electronically and have it in just a couple days.
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