With some factors completely out of your control, you should prepare for the possibility of a longer loan. They aren’t necessarily faster, they’re just meant to be easier to qualify for. Often called a “streamline” refinance, an IRRRL may help you to: Lower your monthly mortgage payment by getting you a lower interest rate, or Make your monthly payments more stable by moving from a loan with an adjustable or variable interest rate (an interest rate that changes over time) to one that’s fixed (the same interest rate over the life of the loan) When you’re first speaking on the phone with a loan officer to schedule an appointment, ask him or her what documents you should bring with you. The single most common reason that IRRRLs take longer than they have to is the borrower not providing the information and documents the lender requests in good time. Hal M. Bundrick, CFP , Kate Wood March 16, 2020 Depending on which lender you choose, times may vary – from anywhere between 2 and 6 weeks. Filed Under: VA IRRRL Refinance Tagged With: how long for a VA IRRRL, how long to VA streamline, IRRRL, VA IRRRL, VA IRRRL Refinance, VA IRRRL streamline refinance, VA streamline timeframes. By not having to go through a normal underwriting process, not having an appraisal, and not having to provide the lender with a bunch of paperwork, the time to process a FHA streamline refinance is greatly reduced. If you are ready to refinance into a fixed rate, you can usually use the VA IRRRL program to do so. Get matched with a VA IRRRL expert by completing your information here – these VA-approved lenders are happy to talk with you and give you a free estimate of both costs and timeframes to getting your VA IRRRL done. There are other things that you don’t have direct control over. But lenders in most cases want both. Even an IRRRL can take a long time if the borrower does not provide the necessary information in a timely manner, however. You know that interest rates fell and you want to take advantage of them. The closing date of the new VA streamline refinance loan must occur after both of the following events: It has been at least 210 days (about 7 months) since you made the first payment on your current VA loan. Application to Closing – How Long Does the VA IRRRL Take? In the event that you do not qualify for a credit rating based on the required minimum credit The VA does not require you to be current on your loan to be eligible for a streamline refinance. If you already have a VA Loan and are considering a refinance, then you should definitely consider a VA Streamline Refinance. This type of refi loan has no VA-required credit check or appraisal (the lender is free to require these depending on circumstances) and is intended to provide a benefit to the borrower in the form of a lower interest rate, a lower mortgage payment, or other benefits we’ll discuss below. Borrowers can finance the 0.5 percent VA funding fee and closing costs into the loan balance on a Streamline. Write down a list of every document they tell you. Also known as a VA Streamline Refinance, the IRRRL allows you to refinance your existing mortgage without having to re-qualify for your loan. Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. How Long Does Streamline Refinance Take? Minimum credit ratings may vary according to lender and mortgage product. Current VA loan holders can use a VA Streamline to refinance into a lower mortgage rate or out of an adjustable-rate mortgage and into a fixed-rate loan. The rule of thumb for the length of time it takes to get an IRRRL is 30 days. © 2021 Low VA Rates, LLC™. A VA streamline refinance, also known as an IRRRL, is a simplified loan with relaxed qualifications for service members and veterans. The process of the FHA streamline refinance is relatively simple. The VA also offers a streamlined “VA loan to VA loan” refinance, known as an “Interest Rate Reduction Refinancing Loan,” or IRRRL for short. Now let’s talk about the different types of streamline refinance options available today. We work hard to match you with local lenders for the mortgage you inquire about. Simplifying the underwriting process makes the loan process much faster than otherwise. If a lender is only slightly more expensive than others but can get the IRRRL loan closed in 10 days, then it may be worth paying a slight premium. Expect most lenders to require a minimum credit score between 600-620 to qualify even though the VA does not set a minimum. The resulting number represents how long it will take you to recoup the costs you spend to complete your refinance. First, in order to qualify for an FHA streamline refinance, you need to have been on time with your mortgage payment for the last 12 months and live in your home. Posted on February 15, 2019 by JMcHood. If you can, bring those to the initial meeting as well. You may still be eligible for a VA streamline refinance to get a lower monthly payment. This process can take … There have to be 210 days between the first payment on your prior loan and the closing date on your VA Streamline. In this case, you cannot use the break-even point. In most cases, if the borrower is prompt with getting the documents and information to the lender, an IRRRL can be completed very quickly. VA Streamline Refinance: Process. If you do qualify using one of the scenarios below, you will be required to refinance the VA loan with the VA IRRRL program. – creditdonkey.com – Final Approval: Once the underwriter approves the appraisal and/or any remaining conditions they had for the loan, the underwriter will issue the "final approval," or the "clear to close." To save money on interest, keep your loan term and monthly payment the same! You… Read More. The answer is: it depends on the VA IRRRL lender. Homeowners with an existing VA loan may qualify for a streamlined refinance program called the Interest Rate Reduction Refinance Loan (IRRRL). You will have closing costs, including the VA funding fee, which is equal to 0.5% of the loan amount. Veterans with service-related disabilities may be eligible to have the IRRRL funding fee waived, which also applies to any funding fees for VA standard purchase or refinance financing. In other cases where obligors have changed, an IRRRL may not be possible at all. People with an adjustable rate mortgage can also take advantage of moving to a fixed-rate loan with an IRRRL. ), whether you should reduce the term of the loan from 30 to 15 years , and other factors. Your email address will not be published. That way, when your loan officer calls or emails you asking for one of those documents, you can plug your thumb drive into the nearest computer and email them to him or her immediately. That being said, streamlines can be done in as little as 10 days. On the lender’s side, the process is very quick and easy. FHA Streamline Refinance. Let’s say you refinance from a 30-year loan to a 15-year loan. This means you are free to close on the loan and take … Consumer NMLS Access - NMLS #1109426. Typically, this means no late payments in the last 12 months. One of these myths is that VA loans can take forever to close. Low VA Rates, LLC is not affiliated with any government agencies, including the VA, FHA, or the HUD. How Long Does Underwriting Take? No, streamline refinance do not require a credit check but most lenders will ask for a credit report and score of at least 620, as a guarantee of your ability to pay back the loan. Posted on: December 12, 2020 . You must be a veteran that owns your home. Obviously, one can expect a streamline to be faster than a standard refinance, else what’s the point of having a streamline option. The exception is the VA Streamline refinance loan. Eligibility requirements. The Top Tips for Moving Out of State. If you are a veteran with an existing VA loan or mortgage, you may qualify to save with a VA Interest Rate Reduction Refinance Loan, or VA IRRRL. As mentioned, a typical refinance can take 30 to 45 days to close. In this case, you cannot use the break-even point. The VA does not require a credit check for a VA streamline refinance, because you’ve already been approved for a loan. Often, borrowers who are interested in the streamline VA refinance loan would like to get it done as quickly as possible. Of the things that affect the time it takes to get approval, some of them you have direct control over, and some you do not. VA home loan refinance options include a unique benefit known as the VA Streamline Refinance. But generally speaking, it is safe to say that you should be able to get a VA IRRRL loan done in less than 30 days from when you sign the loan application. Most VA loans close in 40 to 50 days , which is standard for the mortgage industry regardless of the type of financing. The IRRRL does not have specific occupancy guidelines. The VA Streamline refinance is one of the most powerful refinance options for homeowners who already have a VA Loan. How long does a VA cash-out refinance take? Required fields are marked *. The best way to find out exactly how long your IRRRL will take is to speak with a VA loan officer and explain your specific situation. It also has a lower funding fee than a cash-out refinance — 0.50% vs 2.15% to 3.3%. Suite A, Englewood, CO 80112, Cash-Out Refinancing: Find Out if it Makes Financial Sense, Securing the Best Interest Rate for Your VA IRRRL Refinance, The Top Ways to Increase Your Credit Score Before Refinancing, No employment verification required by the VA. The time it takes to refinance a mortgage depends on a a number of moving parts, such as credit checks, appraisals and your bank. The idea of a VA Streamline is to provide clients who are already in a VA loan with a smoother process if they’re looking to lower their rate or change their loan term. Make sure you work with experts who know the FHA streamline refinance program and can help you answer any questions that you may have about the program. The VA streamline refinance offers a reduced cost, reduced paperwork solution to help eligible Veterans take advantage of lower rates without the cost of refinancing your home. The program was introduced by the FHA as a way to speed up the home refinancing process. This is the only instance where refinancing may increase your interest rate. Pros and cons of refinancing a mortgage with your current lender. With the VA streamline refinance most of the heavy lifting has already been done. VA does not set a cap on how much you can borrow to finance your home. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation. These Refinance loan rates assume that the property will be owner-occupied. You might have heard different places offer no closing costs. You'll also hear this called an Interest Rate Reduction Refinance Loan, or an IRRRL (often pronounced “Earl”). For information on common things that can affect the time it takes to close an IRRRL, continue reading this blog post. There are plenty of myths associated with VA loans, many of which are completely untrue and unfounded. If you’ve had the loan for at least 12 months, they may allow one 30-day late payment in that time as long as you have a good excuse for … VA Streamline Refinance: Process. *Annual savings calculator based on 2015 monthly average savings extrapolated year-to-date. You want to refinance your VA loan just to save money. How long does a refinance take? As explained above, your mortgage is considered to be underwater if the value … How long does a refinance take? Many people who have had VA loans for several years are choosing to refinance their loans now in 2020 because interest rates have fallen in the second half of the year. As long as you can prove that you lived in the home prior to the refinance, it will suffice. Let’s take a closer look at VA streamline closing costs and what to expect. 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