What Makes a Streamline Refinance "Streamlined"?

Both the FHA Streamline and the VA IRRRL (Interest Rate Reduction Refinancing Loan) are specific programs designed by the government to make it easy and fast for **existing borrowers** to reduce their interest rate. Unlike traditional refinances, these programs eliminate several steps that typically slow down the process and increase costs.

Minimal Income Verification

Less paperwork needed compared to traditional loans.

No Appraisal

Your home's value doesn't matter, saving time and cost.

Credit Flexibility

Often requires no new credit report or a more lenient review.

VA IRRRL (Interest Rate Reduction Refinancing Loan)

The **VA IRRRL** is exclusively for eligible veterans and service members who currently have a VA loan. It’s designed to swap your existing VA loan for a new one with a better interest rate, without having to requalify extensively.

 Key Eligibility & Rules

• You must already have a VA loan on the property.
• The IRRRL must result in a **Net Tangible Benefit** (meaning the new payment must be lower, with exceptions for certain situations).
• There is a **funding fee**, but it is typically lower than the fee for a new VA purchase loan.
• **No** income, employment, or credit review required by the VA.

Veteran Benefit Focus

**Mortgage Preferred Partners Refinance Experts, notes: "The IRRRL is one of the best tools for veterans. We focus on ensuring the 'Net Tangible Benefit' test is met. We also specialize in the documentation required to prove the **occupancy requirement**—that you previously occupied the home, even if you are renting it out now—which is often the trickiest part of this streamlined process."

FHA Streamline Refinance Program

The **FHA Streamline** allows existing FHA borrowers to reduce their interest rate and monthly payment quickly. Its primary purpose is to help borrowers get into a more affordable loan without requiring a new home inspection or appraisal.

 Key Eligibility & Rules

• You must currently have an FHA-insured mortgage.
• The purpose must be to lower the monthly principal and interest payment (a reduction in term is also acceptable).
• A minimum of **210 days** and **six monthly payments** must have passed since your last FHA loan closing.
• You must have a solid payment history over the last 12 months.

Focus on Mortgage Insurance

According to **Mortgage Preferred Partners Loan Experts**: "A major factor in FHA Streamline is the **Mortgage Insurance Premium (MIP)**. We carefully calculate the MIP difference. Borrowers who got their FHA loan before June 2013 benefit the most, as their annual MIP may be significantly lower on the new streamline loan, adding to their monthly savings."

**Required Existing Loan Type**

VA Loan

VA IRRRL

**Appraisal Required?**

NO

**Income/Job Verification?**

NO

**Minimum Waiting Period**

6 payments & 210 days

**MIP/Funding Fee**

Required VA Funding Fee

Streamline Programs at a Glance

Both are low-document options, but they serve different borrowers and have distinct cost structures.

**Required Existing Loan Type**

FHA Loan

FHA Streamline

**Appraisal Required?**

NO

**Income/Job Verification?**

Minimal / May be Waived

**Minimum Waiting Period**

6 payments & 210 days

**MIP/Funding Fee**

New FHA MIP Required

**Required Existing Loan Type**

Conventional, VA, FHA (Any)

Traditional Refi (Rate & Term)

**Appraisal Required?**

YES

**Income/Job Verification?**

Full Verification

**Minimum Waiting Period**

None

**MIP/Funding Fee**

Private Mortgage Insurance (if LTV > 80%)

Ready to Lock in a Lower Rate?

Don't spend time gathering documents you don't need. Let our team determine your exact eligibility for these highly efficient programs today.