If you’re a veteran or an active-duty service member with a VA loan, the VA Interest Rate Reduction Refinance Loan (IRRRL), commonly known as the VA EARL (Streamline Refinance), can be an excellent option for refinancing your existing mortgage. This program is designed to help you lower your interest rate and reduce your monthly payments with minimal hassle. Here’s what you need to know about the VA EARL process.
What is VA EARL?
The VA EARL program allows veterans and service members to refinance their current VA home loan to take advantage of lower interest rates. It’s specifically designed to be quick and straightforward, minimizing the paperwork and documentation typically required for refinancing.
Benefits of VA EARL
- Lower Interest Rates: The primary advantage is the potential for a reduced interest rate, which can lead to significant savings over the life of your loan.
- No Appraisal Required: Unlike traditional refinancing, the VA EARL often does not require a home appraisal, which can speed up the process and reduce costs.
- No Income Verification: Many lenders do not require income verification for VA EARL loans, simplifying the application process.
- Reduced Closing Costs: The VA allows you to roll some of your closing costs into the loan amount, making it easier to manage upfront expenses.
- Streamlined Process: The entire process is designed to be quicker and less cumbersome, often allowing you to close in as little as 30 days.
Eligibility Requirements
To qualify for a VA EARL, you must meet certain criteria:
- Existing VA Loan: You must already have a VA loan to refinance through the EARL program.
- Lower Interest Rate: The refinance must result in a lower interest rate unless you’re refinancing from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
- Occupancy Requirement: Generally, you should have occupied the home as your primary residence at some point.
- Good Standing: Your mortgage payments should be current and in good standing.
Key Takeaways
The VA EARL program is a valuable option for veterans and active-duty service members looking to lower their mortgage payments without the usual refinancing hassles. If you think you might benefit from this program, consider reaching out to us to discuss your options. Depending on your unique scenario and with the right approach, you can secure a better mortgage and enjoy the peace of mind that comes with financial savings.
Have questions? Contact us today to discuss your purchasing options based on your unique scenario! We are here to help to answer any questions.
Phone: (815) 582-9066 & (815) 593-4122