Hawaii VA Loans

Many people know the benefits that VA Loans have when purchasing a property. No down payment required, no Private Mortgage Insurance, reduced closing costs, among others. But many VA mortgage holders don’t realize that they have another huge benefit. When interest rates drop - VA mortgage holders can easily reduce their rates through a streamline process - also known as the Interest Rate Reduction Refinancing Loan (IRRRL) Program.

The IRRRL Program, or VA Streamline Refinance, allows a current VA mortgage holder to reduce their interest rate without extra requirements needed by conventional mortgage holders.

• No Appraisal Required
• No Income Verification
• No Asset Verification
• No Out-of-Pocket Expense

Often times when I speak with a VA homeowner and tell them about this program I get a reaction like, “This sounds too good to be true”, and “What’s the catch?”. Well, there’s really no catch and if you look at the dynamics involved, you can see how this is all possible.

The VA Department, who guarantees all VA loans in the event of default, allows this streamline process to make it as easy as possible to help all VA mortgage holders reduce their payments. By helping them reduce their payment they drastically reduce the default risk within their pool of loans they must guarantee. Decreasing the amount of defaults mean less money the VA Department will have to pay out to lenders who are stuck with VA foreclosed properties.

In this situation everyone wins; homeowners pay less in their mortgage, VA Department has less loan defaults they will have to cover which means more funds they can retain.

I guess the only thing left to do is find out if current VA rates are lower than the rate you have now.

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