VA Streamline Loan Fees and Limits
As with your original VA purchase loan, the VA collects a funding fee on your refinance loan. It is the only fee that is required by the VA, and it is 0.5% of the loan amount for every person who does a streamline refinance. It can either be rolled into the new loan or paid in cash at closing. As with a VA purchase loan, veterans who receive disability benefits are exempt from the funding fee requirement.
VA funding fees are small compared to all the savings you get with a VA loan.
VA funding fees are small compared to all the savings you get with a VA loan. The fee helps sustain the VA lending program, which is not funded by taxpayer dollars or the funds from other benefits programs that the VA offers. The funding fee is set and collected by the Department of Veterans Affairs.
There are typically no out-of-pockets costs associated with the VA Streamline program and closing costs can be rolled into the new loan or covered by choosing an interest rate that offers a lender credit to cover the associated costs. Speak to your Strive Lending representative for more information on the available options.
The streamline refinance option is only for people who are refinancing a home with current VA mortgage. However, you do not have to still be using the home as your primary property. Nor do you have to use the same lender that you used for your initial VA loan. The paperwork will be quick and easy even with a new lender.
The streamline refinance is limited to the amount of the original loan, plus any accrued late fees or charges. It can also include refinance fees and closing costs. No other loans may be paid with the streamline refinance option.
You cannot get any cash back from a streamline refinance loan. See more information about energy-efficient improvements here.
Another important rule is that your interest rate on the new loan must be lower than it was on the old loan. One exception to this rule is if you are refinancing an adjustable-rate mortgage into a fixed-rate mortgage. In this case, your interest rate is likely to be higher with the refinanced loan. You are also exempt from this rule if you are refinancing to a shorter loan term.
Use our Streamline Refinance Calculator to see how much you’ll save!
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