Interest Rate Reduction Refinancing Loan also referred to as Streamline or VA to VA loan. Here are some guides regarding loan product:
Current mortgage must be guaranteed by VA
Loan must be current with no mortgage lates in the last 12 months
The principal and interest payment must decrease, unless refinancing ARM to Fixed product or;
Term of a new mortgage is shorter than term of original or;
Energy efficient improvements are included in the IRRRL
Must have a lower interest rate than the previous loan unless the previous loan is an ARM (can be fixed rate or hybrid ARM)
Can include full pay off of existing guaranteed VA loan, closing costs, discounts (maximum 2%), prepaids, and funding fee.
No lien other than the existing VA loan may be paid from the proceeds of the IRRRL.
The term cannot increase by more than 10 years over the original terms (15-25, not 15-30)
A minimum credit score of 640 is required for all Borrowers as determined by either a tri-merged credit report or a residential mortgage credit report.
Maximum Loan-To-Value (LTV) is 100%.
The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.
For more information, call me (619) 972-3209 / Manny Alfelor / BluFi Lending / Mortgage Banker