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Can You Skip a Mortgage Payment with a VA Streamline Loan?


If you have a high interest rate VA loan, the Veterans Administration can help through its VA streamline Interest Rate Reduction Loan (IRRL) mortgage refinance program.

Learn How People Have Saved Money by Skipping 1 or 2 Mortgage Payments when you Streamline Your VA Loan!

You'll enjoy reduced interest rates, and this program will lower your VA mortgage payment. Some of the benefits of the VA Streamline refinance include:

  • Faster processing compared to conventional loans.
  • Option to roll closing costs into the new loan, so there is no out of pocket expense to you.
  • No credit underwriting in most cases.
  • No income documentation or job verification.
  • No termite report.
  • No appraisal needed in most cases.
  • Faster equity growth if the term of your VA loan is reduced.
  • Lower monthly payments.
  • Option to include up to 2 months payments into your VA streamline loan, skipping up to 2 monthly payments.
  • Get a cash refund of any escrow balance with current lender.
  • Get up to $500 cash at closing.
  • If the property is now rented, you must certify that you once lived in the property.
  • VA allows you to rollover up to $6,000 into the loan amount for energy efficient home improvements.
  • If you are receiving VA Disability Benefits you don't have to pay the VA Funding Fee.
  • No prepayment penalty.

The Veterans Administration Streamline Refinance is available to active duty military, surviving spouses, veterans and reservists. In order to be eligible for the VA Streamline, the mortgage to be refinanced must be an existing VA home loan. When going from a fixed 30 year to a new fixed 30 year loan your interest rate and payment must go down. However, the VA allows the interest rate to be a little higher if you're refinancing an adjustable rate mortgage (ARM) to a fixed rate loan. The VA Streamline is a rate and term refinance, no cash out is allowed. But skipping 2 payments is like cash out.

Low rate home mortgages are nearly unheard of, especially for the credit-challenged. But, VA loans are not affected by declining market values or the foreclosure crisis. They still offer low rate home mortgages because the interest rates are set by the government. They aren't governed by the performance of mortgage backed securities (MBS) on the trading floor, as are conforming Fannie Mae and Freddie Mac loans.

As a result of the staggering losses lenders and MBS investors have taken, conventional mortgage rates are on the rise despite the fact that the Federal Reserve has been lowering interest rates. This is because investors are now gun shy of investing in mortgage backed securities, which leaves less money for the lenders to lend. VA mortgage rates, on the other hand remain low, making the VA loan an increasingly popular option for those who previously overlooked them.

  • The VA streamline IRRL does not require any income, asset verification or credit report and it's available in fixed-rate mortgage options. If your VA loan rates are higher than today's low rates, it's time to find out how much you can save. Even if you have bad credit, as long as you have not had more than one thirty-day late mortgage payment in the last 12 months, you could be eligible for a VA streamline refinance. Currently, the maximum VA streamline refinance home loan amount is $417,000. Fill out the free loan request or call us toll-free.