How Long Does it Take to Close a VA Loan? Qualify for a VA Streamline Refinance. Otherwise, find a way to scan them onto a computer (if they’re not already electronic), then put all of the documents on a thumb drive and carry the thumb drive with you until the loan closes. The process is easier than a conventional mortgage or refinance. While the average VA loan takes longer than other loan programs to close, they don’t take forever to close – … 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. Generally, you can expect between 3 and 6 weeks to close on your FHA Streamline loan, though. Thomas Short Military VA Loan contributor. ), whether you should reduce the term of the loan from 30 to 15 years , and other factors. 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. Depending on which lender you choose, times may vary – from anywhere between 2 and 6 weeks. The time it takes to refinance a mortgage depends on a a number of moving parts, such as credit checks, appraisals and your bank. However, some VA lenders impose their own waiting period of up to … However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. You will have closing costs, including the VA funding fee, which is equal to 0.5% of the loan amount. In the current lending environment, some lenders want to see a score of at least 660 from prospective borrowers. Once you have the initial paperwork completed for the VA streamline refinance, the lender should take about 3-4 days to process the paperwork, 3-4 days to underwrite it and 1-2 days to get documents ready. You can … ... (2.796% APR) with 0.750 discount points on a 60-day lock period for a 30-Year Streamline (IRRRL). there is no requirement to have a VA appraisal done, information and documents the lender requests, FAQ; How many payments qualifies an IRRRL. On the lender’s side, the process is very quick and easy. As of this writing (January, 2013) it seems to be taking the fastest lenders about 3 weeks and the slowest lenders about 90 days on average. A VA streamline refinance might be the easiest way to lower your interest rate when you have a VA mortgage. Hal M. Bundrick, CFP , Kate Wood March 16, 2020 One thing you can’t do is take cash out with this loan option. How long does a refinance take? the IRRRL may have to go to the VA for prior approval before the lender can close on it. 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. FHA streamline refinances typically do not take as long as a normal refinance due mostly to the fact that the process and paperwork is greatly reduced. The VA also offers a streamlined “VA loan to VA loan” refinance, known as an “Interest Rate Reduction Refinancing Loan,” or IRRRL for short. Let’s say you refinance from a 30-year loan to a 15-year loan. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product. IRRRL is also called a streamline refinance. Here’s the catch. The VA streamline refinance loan does not require that the borrower currently occupies the home which is currently financed with a VA mortgage product, as long as they can prove it was once their primary home. However, just like FHA streamline refinance, there is no cash-out option with the VA’s streamline refinance program. So how fast is a streamline? This program has a simple application process and it often can lower the borrower’s monthly payment. How Long Does Underwriting Take? This loan allows you to easily refinance your mortgage to a lower interest rate than what you have now. Your email address will not be published. Yes, in some cases you can take on a higher payment and still qualify for the VA streamline refinance. On the flip side, your loan could close much quicker than the 52 days. VA Streamline Refinance Program. If you are ready to refinance into a fixed rate, you can usually use the VA IRRRL program to do so. You must also have made six consecutive monthly payments on your loan, and there must be 210 days between your first mortgage payment and the closing on the VA Streamline. If you still have the teaser rate from the ARM loan, the fixed rate will likely be higher, but that’s okay. Most IRRRLs do not need to be sent to the VA for prior approval, but in cases where the existing loan is delinquent, or in cases where the obligors on the loan are changing (adding a spouse, removing an ex-spouse, etc.) *Annual savings calculator based on 2015 monthly average savings extrapolated year-to-date. Requirements may vary depending on the lender you talk to. IRRRLs can be completed so much faster than normal refinances because there is no requirement to have a VA appraisal done on the home, and there is no need to verify income, employment, or assets of the borrower in order to get approved. The closing costs for the VA Streamline refinance are similar to any other type of closing. Once you have the initial paperwork completed for the VA streamline refinance, the lender should take about 3-4 days to process the paperwork, 3-4 days to underwrite it and 1-2 days to get documents ready. 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. 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. For answers that are specific to your exact circumstance, speak with a VA-approved loan officer and ask how long it will take. You must already have a VA home loan. 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. Typically, this means no late payments in the last 12 months. You know that interest rates fell and you want to take advantage of them. And since very few lenders specialize in only the VA loan programs, the VA loans that get done there are pretty much lumped in with the other loan program types. The rule of thumb for the length of time it takes to get an IRRRL is 30 days. Also note that a streamline refinance can take just as long as a regular refinance. Low VA Rates, LLC is not affiliated with any government agencies, including the VA, FHA, or the HUD. When you choose a VA lender to help you with the IRRRL program, be sure to ask about how long the typical VA IRRRL takes and whether or not they specialize in the VA IRRRL program or it just happens to be one of the many hundreds of different loan programs they do. The typical refinance loan process can take 45 to 60 days. When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . You would instead, have to first determine if you can afford the higher payment. The primary difference between the VA streamline refinance and VA cash-out refinance is the amount of paperwork — it’ll be similar to what you experienced with your existing mortgage. 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. find yourself planted in this strange area where no one knows you … But lenders in most cases want both. You might have heard different places offer no closing costs. The Top Tips for Moving Out of State. You'll also hear this called an Interest Rate Reduction Refinance Loan, or an IRRRL (often pronounced “Earl”). Most VA loans close in 40 to 50 days , which is standard for the mortgage industry regardless of the type of financing. The VA does not require a credit check for a VA streamline refinance, because you’ve already been approved for a loan. The VA does not require you to be current on your loan to be eligible for a streamline refinance. Pros and cons of refinancing a mortgage with your current lender. Required fields are marked *. Posted on February 22, 2019 by JMcHood. Posted on: December 12, 2020 . 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. When inquiring about a mortgage on this site, this is not a mortgage application. Application to Closing – How Long Does the VA IRRRL Take? Yes, that’s a lot of “R’s,” but a VA streamline refinance is easy to execute and can save you a lot of money now that mortgage rates are so … For current VA loan holders who do not need cash back at closing, the VA Streamline Refinance is usually a better choice. The VA streamline loan does offer the ability to refinance into a shorter term. You just cut the term in half, which means you have half of the time to pay it off. VA Streamline Refinance: Process. However, a VA Streamline Refinance does not let you take any cash out. Even an IRRRL can take a long time if the borrower does not provide the necessary information in a timely manner, however. IRRRLs are meant to be very fast, however – that’s why they are called a streamline refinance option. Just because IRRRLs can be completed in 10 days, however, does not necessarily mean that your IRRRL can be completed that quickly. The program was introduced by the FHA as a way to speed up the home refinancing process. To be eligible for a VA streamline refinance home loan there are a few things to keep in mind. Simplifying the underwriting process makes the loan process much faster than otherwise. You may still be eligible for a VA streamline refinance to get a lower monthly payment. Depending on which lender you choose, times may vary – from anywhere between 2 and 6 weeks. How long does a refinance take? VA Streamline Refinance Loan Eligibility. rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee. These Refinance loan rates assume that the property will be owner-occupied. VA does not set a cap on how much you can borrow to finance your home. Eligible Veterans have the ability to purchase a home using their VA home loan benefit with no … It is extremely odd for an IRRRL to take longer than 30 days. In fact, dig into the numbers a bit and you don't find much difference between VA and conventional loans. VA home loan refinance options include a unique benefit known as the VA Streamline Refinance. In an ideal situation, a borrower can expect a streamline refinance to be completed anywhere from 30 days to as little as a few weeks. Click on these links to access our Privacy Policy and our Licensing Information. The process timeline is a fairly common question we often get about VA streamline refinances. As mentioned, a typical refinance can take 30 to 45 days to close. Each loan is different, but here are some time frames to get you in the ballpark. Consumer's total finance charges may be higher over the life of the loan. The VA streamline refinance program is a special program that is available for people who have current VA loans. The VA doesn’t put a limit on how many times you can take advantage of the VA streamline refinance program, the only requirement is that it makes financial sense each time. To fully qualify for a VA streamline refinance, a homeowner who currently has a VA mortgage must have successfully made 12 consecutive months of mortgage payments on time. As long as you can prove that you lived in the home prior to the refinance, it will suffice. The answer is: it depends on the VA IRRRL lender. In cases where the borrower is getting an IRRRL to lower their monthly payment to something manageable, getting a refinance finished quickly can make the difference between becoming delinquent on the loan and staying current. 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. The VA streamline loan does offer the ability to refinance into a shorter term. On the lender’s side, the process is very quick and easy. We work hard to match you with local lenders for the mortgage you inquire about. AK-1109426; Arizona Mortgage Banker License #0926340; California DBO Finance Lenders Law License #603L038; Licensed by the Delaware State Banking Commission License #018115; Georgia Residential Mortgage Licensee License #40217; Illinois Residential Mortgage License #MB.6761021; Licensed by the New Jersey Department of Banking and Insurance, Ohio Mortgage Loan Act Certificate of Registration #SM.501937.000; Oregon Mortgage Lending License # ML-5266; Rhode Island Licensed Mortgage Lender License #20143026LL; Texas License LOCATED at 201 S Lakeline Blvd., Ste 901, Cedar Park, TX 78613; EAH061020 NMLS ID# 1109426 Consumer NMLS Access www.nmlsconsumeraccess.org. A VA streamline refinance loan allows you to reduce the interest rate or secure more favorable terms on an existing VA-backed home loan. While it is possible to not pay any money at closing, that doesn’t mean there aren’t closing costs or that the loan is free. The application, credit check, and appraisal portions of the loan are simplified to allow homeowners to lower their interest rate and start saving as quickly as possible. You have made at least 6 full payments … Now let’s talk about the different types of streamline refinance options available today. Then ask him or her what other documents are likely to be needed during the process. There are situations where a lender will process a Streamline without an appraisal. In this case, you cannot use the break-even point. This process can take … Write down a list of every document they tell you. This means you are free to close on the loan and take … The topic of appraisals can get trickier. Also known as a VA Streamline Refinance, the IRRRL allows you to refinance your existing mortgage without having to re-qualify for your loan. And it can only be used with a current VA loan. The best way to contact an FHA streamline refinance expert? It is a shorter process, but there are still certain steps you must take. All Rights Reserved. However, some VA lenders impose their own waiting period of … When your mortgage is adjustable, your payment can go up without warning making meeting monthly expenses difficult. The resulting number represents how long it will take you to recoup the costs you spend to complete your refinance. However, be sure to consider all your options, including the total cost of the loan (all closing costs, fees, etc. As mentioned, a typical refinance can take 30 to 45 days to close. There also has to be a net tangible benefit for you as the client to complete the refinance. The process of the FHA streamline refinance is relatively simple. 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. The process of the FHA streamline refinance is relatively simple. Start by submitting your information today! Who Are VA Streamline Refinances For? The process is easier than a conventional mortgage or refinance. You may be able to obtain a VA Streamline without the need for a credit check or a VA appraisal. 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. Filling out our short form only takes a minute. 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. Homeowners with an existing VA loan may qualify for a streamlined refinance program called the Interest Rate Reduction Refinance Loan (IRRRL). 3) HARP streamline refinance programs. The time it takes to refinance a mortgage depends on a a number of moving parts, such as credit checks, appraisals and your bank. Consumer NMLS# 1109426 (This page and its contents are not intended for residents or home owners in the states of MA, NY or WA.) Each VA loan lender has their own processes and turn times when it comes to the way that they close loans. Even an IRRRL can take a long time if the borrower does not provide the necessary information in a timely manner, however. No closing costs sound great, but is there such a thing? 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) One of these myths is that VA loans can take forever to close. With a VA Streamline refinance loan, there’s no need for the borrower to furnish another Certificate of Eligibility. You may see a VA Streamline referred to as an interest rate reduction refinance loan (or IRRRL, pronounced “Earl.”) If you’re trying to lower your interest rate or change your term, you may qualify for this loan option. In the event that you do not qualify for a credit rating based on the required minimum credit How Long Does Streamline Refinance Take? Minimum credit ratings may vary according to lender and mortgage product. Depending on what lender you choose to work with for a VA IRRRL, it could take anywhere from 30 days to 180 days. With some factors completely out of your control, you should prepare for the possibility of a longer loan. You… Read More. Streamline refinancing is a mortgage refinancing process in the United States for Federal Housing Administration (FHA) mortgages that reuses the original loan's paperwork allowing quicker refinancing. This is not an offer to lend and we are not affiliated with your current mortgage servicer. Well, yes and no. 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. Not affiliated with HUD, FHA, VA, FNMA or GNMA. Save my name, email, and website in this browser for the next time I comment. IRRRLs can commonly take around 20 days, and a more complicated IRRRL that waits on information from the borrower can take … 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. Many people who are interested in an FHA streamline refinance wonder what is involved and how long it takes to complete the refinance and get a new FHA loan. IRRRLs can be completed so much faster than normal refinances because there is no requirement to have a VA appraisal done on the home, and there is no need to verify income, employment, or assets of the borrower in order to get approved. © 2021 Low VA Rates, LLC™. As explained above, your mortgage is considered to be underwater if the value … Eligibility requirements. How long does a VA cash-out refinance take? Your email address will not be published. In most cases, if the borrower is prompt with getting the documents and information to the lender, an IRRRL can be completed very quickly. It’s important to note that you must wait 270 days from the closing of your original mortgage to apply for the VA Streamline. 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. In other cases where obligors have changed, an IRRRL may not be possible at all. Corporate Address: 384 South 400 West Suite 100, Lindon, UT 84042, 801-341-7000. To save money on interest, keep your loan term and monthly payment the same! There are plenty of myths associated with VA loans, many of which are completely untrue and unfounded. Contact Us | Terms of Use | Privacy Policy, 8123 South Interport Blvd. Apply for the Loan First, you must apply for the loan. That being said, streamlines can be done in as little as 10 days. VA lender ID #9797520000. There are several different ways your loan can pass this test, but a couple of them include a reduced interest rate or lower monthly payment. There are other things that you don’t have direct control over. Let’s take a closer look at VA streamline closing costs and what to expect. With today’s simplified procedures, and very little paperwork, a streamline should take one month at most. In fact, the VA doesn't require a credit score check or an appraisal for a Streamline refinance. Here we’ve compiled some of the most common streamline questions. With the VA streamline refinance program, as long as your interest rate and payment are going down and your file meets the “net tangible benefit” test, you are eligible to participate. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. In other words, if you give yourself 30 days to complete an IRRRL, you’re probably safe. For example, if you’re going with an FHA or VA Streamline, you won’t need to wait for an appraiser to visit your property. How Long Does it Take to Close a VA Loan? Let’s say you refinance from a 30-year loan to a 15-year loan. The exception is the VA Streamline refinance loan. People with an adjustable rate mortgage can also take advantage of moving to a fixed-rate loan with an IRRRL. 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. In most cases, you can roll this cost into your loan amount along with your closing costs, as discussed above. VA ID 979752000 FHA ID 00206 Alaska Mortgage Broker/Lender License No. Consumer NMLS Access - NMLS #1109426. If it takes you three days to get back with the lender after they’ve requested a document, then you just added three days to how long it will take before approval. 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. 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. And since very few lenders specialize in only the VA loan programs, the VA loans that get done there are pretty much lumped in with the other loan program types. The lower the number of months to recover your costs, the sooner you’ll realize the savings on your refinance, and the better the deal is for your bottom line. 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. Can you refinance into a higher payment with the VA streamline refinance? For information on common things that can affect the time it takes to close an IRRRL, continue reading this blog post. If you already have a VA Loan and are considering a refinance, then you should definitely consider a VA Streamline Refinance. In this case, you cannot use the break-even point. How long does streamline refinance take? A VA streamline refinance, also known as an IRRRL, is a simplified loan with relaxed qualifications for service members and veterans. 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. Consult with a VA loan officer to find out if you can get an IRRRL for your VA loan. Borrowers can finance the 0.5 percent VA funding fee and closing costs into the loan balance on a Streamline. Call 888.448.2669 and an FHA streamline refinance expert will be happy to answer your questions. Expect most lenders to require a minimum credit score between 600-620 to qualify even though the VA does not set a minimum. The process of the FHA streamline refinance is relatively simple. – 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." Depending on which lender you choose, times may vary – from anywhere between 2 and 6 weeks. If you do qualify using one of the scenarios below, you will be required to refinance the VA loan with the VA IRRRL program. It also has a lower funding fee than a cash-out refinance — 0.50% vs 2.15% to 3.3%. This is the only instance where refinancing may increase your interest rate. You must be a veteran that owns your home. The easiest way to get approved for a VA loan and be sure that you are getting the best deal is to speak with multiple VA lenders about your situation. For example, if you’re trying to get an IRRRL to refinance a delinquent loan, if it can be done at all, it will most likely have to be sent to the VA for prior approval before the loan officer can close on it with you. Low VA Rates, LLC ™ is not affiliated with any U.S. Government Agency nor do we represent any of them. 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