VA Streamline Refinance in Wisconsin
The VA Interest Rate Reduction Refinance Loan (IRRRL), often called a VA Streamline Refinance, is a specific refinancing option available for active-duty military members or veterans in the state of Wisconsin who currently hold a VA home loan. This program offers military personnel the chance to lower their interest rate and monthly payments by refinancing with minimal paperwork and no upfront costs.
Why might I want to get an Wisconsin IRRRL?
Known as a streamline refinance, an IRRRL could help Wisconsin veterans and service members:
- Lower your monthly mortgage payment by getting you a lower interest rate, or
- Make your monthly payments more stable by moving from a loan with an adjustable or variable interest rate (an interest rate that changes over time) to a fixed rate (the same interest rate over the life of the loan)
With a no-down-payment VA loan in Wisconsin, you can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most regions—and possibly more in certain high-cost counties. You can also borrow beyond these limits if you choose to make a down payment.
Learn about VA home loan limits
Before refinancing your Wisconsin home, carefully consider the closing costs, which can total several thousand dollars. To determine if refinancing is worthwhile, divide the estimated closing costs by the monthly savings from refinancing. Your Wisconsin mortgage lender can guide you through the costs and benefits, but be sure you fully understand the details of the transaction.
Visit the Consumer Financial Protection Bureau for more information
Download the Bureau’s home loan toolkit (PDF)
VA Streamline IRRRL Eligibility Criteria for Wisconsin Homeowners
You may be eligible for a Wisconsin VA IRRRL if you meet the following requirements:
- Existing VA loan: The IRRRL exclusively applies to properties originally financed with a VA loan. Those with non-VA loans are not eligible but might consider the VA Cash-Out refinance option.
- Previous occupancy of the home: You must certify that you currently reside, or have resided, in the home. There is no requirement for the property to be your primary residence, unlike VA purchase loans.
- Flexible income and employment requirements: Typically, income verification is not necessary unless the new mortgage payment increases by more than 20% or if there are stability concerns. Lenders may still request a two-year employment history.
- Net tangible benefit: The VA mandates that all refinances provide a tangible benefit to the borrower, such as a reduced interest rate, lower monthly payment, or a move from an adjustable to a fixed-rate mortgage. Lenders may also impose restrictions on how quickly the costs and fees of the new loan must be recouped.
- Loan seasoning: Many lenders require you to hold your existing VA loan for a certain period and make at least six months or 210 days of payments before qualifying for a Wisconsin IRRRL.
- Maximum loan term: The length of the new loan cannot surpass the original VA loan term by more than 10 years, with a cap of 30 years and 32 days. For instance, a Veteran refinancing a VA loan with a 15-year term could get a maximum 25-year term on the IRRRL.
In most scenarios, appraisals and credit underwriting are not needed for a Wisconsin VA IRRRL to make the process more straightforward. However, lender-specific credit score, appraisal, and loan-to-value requirements may differ.
Note: If you have a second mortgage on the home, the holder must agree to make your new VA-backed loan the first mortgage.
How to Obtain a VA Streamline Refinance in Wisconsin
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Find a lender
You’ll go through a private bank, mortgage company, or credit union licensed in Wisconsin - not directly through us - to get an IRRRL. Terms and fees may vary, so contact several lenders to check out your options.
Note: Be cautious when considering VA home loan refinance offers. If you receive offers in Wisconsin promising skipped payments, extremely low interest rates, or other overly attractive terms, they may be misleading.
Learn more about the signs of misleading refinance offers -
Give your lender any needed information.
Should you have the Certificate of Eligibility (COE) that you utilized to secure your original VA-backed home loan, present it to your lender to demonstrate the previous use of your entitlement. If you lack your original COE, request your lender to obtain your COE electronically via the VA Home Loan program portal.
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Follow your lender’s process for closing on the IRRRL loan, and pay your closing costs.
You might be required to pay the VA funding fee, a one-time fee that helps reduce loan costs for U.S. taxpayers, since the VA home loan program doesn’t mandate down payments or monthly mortgage insurance. Additionally, your lender will charge interest on the loan along with closing fees.
Ready to explore your VA Streamline Refinance options in Wisconsin? Connect with Peoples Bank & Trust today to learn more about how much you could save.
Want to Learn More About VA IRRRL Options in Wisconsin?
Discover how a VA Interest Rate Reduction Refinance Loan (IRRRL) could help you lower your payments and simplify your mortgage in Wisconsin. Get all the details and see if you qualify.
Learn About VA IRRRLsIRRRL Program FAQs
Let’s walk through some of the most common questions about VA IRRRLs and what homeowners can expect throughout the process.
IRRRL stands for Interest Rate Reduction Refinance Loan. It's also referred to as the VA Streamline refinance.
Generally, the borrowers on the original VA loan need to be on the new IRRRL unless the death or divorce of an applicant occurs. Lenders usually can't remove a currently married or separated spouse from the new loan if they're obligated on the old one.
VA IRRRLs are unique in terms of VA loan entitlement. Getting an IRRRL does not require the use of a new or additional entitlement. Whatever amount of VA loan entitlement was used to secure the original purchase loan remains the same for the new loan, regardless of the loan amount.
Having a higher or lower loan amount on the IRRRL can affect the guaranty amount, which reflects how much lenders would recoup in the event of default. But it cannot affect the amount of a Veteran’s previously used entitlement.
An IRRRL is generally a form of refinancing where no cash-out is allowed. However, as much as $6,000 in additional money may be borrowed to cover the cost of qualified energy efficiency improvements completed within 90 days before closing. Ask your lender for details.
Closing costs and fees for a VA IRRRL can vary by lender, but typically range from 3% to 5% of the loan amount. Borrowers can typically roll these into the final loan amount instead of paying the costs upfront. Ask your lender for details or talk with a Peoples Bank & Trust loan specialist at 1-800-697-4371.
Refinancing to a 15-year mortgage is entirely possible and very common. The lifetime interest cost of a shorter loan will be less than a 30-year mortgage. However, the monthly payments on a 15-year mortgage can be significantly higher.
Look at both the monthly payments and lifetime interest costs to see if a mortgage with a shorter term makes sense.
Refinancing may result in higher finance charges over the life of the loan.
