(302) 703-0727

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Delaware VA IRRRL Guidelines – (VA Streamline Refinance)

John Thomas July 9, 2010 Tags: , ,
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Delaware Veterans Administration IRRRL Refinance Loan Guidelines (VA Streamline Refinance)

If you currently have a Veterans Administration Home Loan, commonly called a VA Loan, then you have the option to do a streamline refinance to lower your interest rate called a Delaware VA IRRRL.  This is called a Delaware VA IRRRL Refinance, which stands for Interest Rate Reduction Refinance Loan.  You must currently have a VA loan on the property you want to refinance in order to qualify for a VA IRRL.

VA doesn’t require an appraisal on the property or any kind of credit check but most lenders will require a credit check to verify a minimum of 600 middle FICO score.  Some lenders may also require a conventional exterior appraisal on form 2055 but this is NOT a requirement of the Department of Veteran Affairs, it is a lender overlay.

VA doesn’t require a new certificate of eligibility for a VA streamline refinance, you will instead get a Prior Loan Validation from VA that can be used by the lender instead.  The VA IRRRL can be done with “no money out of pocket” because you can roll all of the closing costs into the new loan.  The Veterans Administration states that you can roll in your loan payoff, plus allowable fees and closing costs, including funding fee and up to 2 discount points.

The occupancy requirement for a VA IRRRL set forth by VA is different than when you bought the house.  When you purchase a home with a VA Loan, you must certify that you are going to live in the property as your primary residence.  But when you do a VA Streamline refinance, you only certify that you previously occupied the property.

You are not allowed to pay off any other mortgages on the property other than the existing VA Loan.  If you currently have a second mortgage, the second mortgage lien holder must agree to subordinate the second mortgage to the new first VA Loan.  If second lien holder refuses to subordinate their loan then you will not be able to complete a VA IRRRL Refinance.

The Delaware VA IRRRL Loan Process is very Simple:

1) No income verification required

2) No assets verification required

3) No appraisal needed for most lenders, some only require an exterior inspection form 2055.

4) Funding Fee is only 0.5% which can be financed and if disabled you are exempt from funding fee.

5) All closing costs and prepaid items can be financed into the new loan

  • Can close with no money at the settlement
  • Can skip next month mortgage payment because rolled into the payoff

If you are a veteran or the surviving spouse of a veteran then you can apply for VA IRRRL refinance in Delaware, Maryland, New Jersey, Virginia or Pennsylvania by calling 302-703-0727 or you can APPLY ONLINE.   We can close these loans in as little as 10 days so apply now

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Delaware VA Lender

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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