Simplify your VA Loan with a streamline refinance
A VA Streamline Refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), is designed to make refinancing simpler for eligible VA homeowners.
Bank CMG is not affiliated with, endorsed or sponsored by the U.S. Department of Veterans Affairs, the Department of Defense or any government agency. VA loans are subject to VA eligibility, credit approval and property requirements.
What is a VA Streamline Refinance?
A VA Streamline Refinance was created by the U.S. Department of Veterans Affairs specifically for homeowners who already have a VA loan. Instead of starting the mortgage process over, this program simplifies refinancing while still providing meaningful financial benefits. Whether you're looking to reduce your monthly payment, gain payment stability, or simply take advantage of today's interest rates, a VA Streamline Refinance can help you reach your goals with fewer requirements than many other refinance options.
Highlights
VA Streamline Refinance features
Can I get cash out with a VA Loan?
You absolutely can get cash out with a VA Loan. A VA cash-out refinance is slightly different than a VA IRRRL, but could be a good choice if you:
- Have built equity in your home
- Need a larger amount of cash
- Want one new mortgage instead of multiple loans
- Plan to stay in your home for several years
- Are comfortable replacing your existing mortgage
It also comes with slightly different eligibility factors:
- Can take up to 100% cash out (vs 80% with a conventional cash out)
- Up to $5M (higher than conventional cash out)
- Requires an appraisal
- Credit scores as low as 580 allowed
Is a VA Streamline Refinance right for you?
A VA Streamline Refinance may be a good fit if you:
- Already have a VA home loan
- Are an eligble Veteran, reservist, active-duty military member, National Guard, or surviving military spoouse
- Want to reduce your monthly mortgage payment
- Want to replace an adjustable-rate mortgage with a fixed-rate mortgage
- Prefer a simpler refinance process
- Plan to stay in your home long enough for the monthly savings to outweigh closing costs
Things to consider before getting a VA Streamline Refinance
While a VA Streamline can be a great option for many borrowers, it might not be right for everyone. Here are some things to be aware of before you get a VA Streamline Refinance:
- Closing costs still apply
- Streamline & cash out can't be combined
- Funding fee may apply
- Existing VA Loan required
- Clear financial benefit required (lower interest rate, adjustable to fixed-rate, etc)
If you need help deciding if this is the right option for you, let us know!
How it works
1. Confirm your eligibility
Your loan officer reviews your current VA mortgage and determines whether a VA Streamline Refinance is the right option.
2. Compare loan options
Do you want cash out or lower payments? Compare options with us to see which is the best fit and what your potential savings could be
3. Submit your application
Complete a simplified refinance application. Because this program is streamlined, documentation requirements are often reduced.
4. Loan processing
We'll verify your eligibility and prepares your new VA Loan. In many cases, an appraisal is not required.
5. Close on your new loan
Your existing VA mortgage is paid off and replaced with your new VA Loan, allowing you to begin making payments under your updated terms.
Frequently Asked Questions
We’re here to help! Find answers to your everyday banking questions.
A VA Streamline Refinance, officially called an Interest Rate Reduction Refinance Loan (IRRRL), is a refinance program backed by the U.S. Department of Veterans Affairs that helps eligible homeowners refinance an existing VA loan with fewer documentation requirements.
Generally, you must already have a VA-backed home loan. Your lender will also verify that the refinance provides a tangible financial benefit, often called a "net tangible benefit."
No. A VA Streamline Refinance is not designed to provide cash from your home's equity. Borrowers may receive up to $500 at closing for minor adjustments, but larger cash withdrawals require a VA Cash-Out Refinance, where you can take up to 100% out.
In many cases, no. One of the biggest advantages of a VA Streamline Refinance is that a home appraisal often isn't required, though requirements may vary.
Often, no. Many VA Streamline Refinances require less income and employment documentation than a traditional refinance, although individual requirements may differ.
Yes. One of the primary benefits of a VA Streamline Refinance is the ability to convert an eligible VA adjustable-rate mortgage into a fixed-rate loan.
Most borrowers pay a reduced VA funding fee for a Streamline Refinance, although certain Veterans, including those with qualifying service-connected disabilities, may be exempt.
In many situations, eligible closing costs may be rolled into the new loan amount, reducing your out-of-pocket expenses at closing, subject to VA guidelines and lender requirements.
It can be if the refinance provides a meaningful financial benefit, such as lowering your monthly payment, reducing your interest rate, or moving from an adjustable-rate to a fixed-rate mortgage. Your loan officer can help determine whether the savings justify the refinance costs.