VA 3/1 Hybrid Streamline Loan

VA 3/1 Hybrid Streamline Loan (IRRRL)

The VA 3/1 Hybrid Streamline Loan (IRRRL) offers veterans a flexible mortgage option with a fixed interest rate for the first 3 years followed by an adjustable rate thereafter. This hybrid approach provides initial payment stability with potential savings in the short term.

Initial Fixed Rate Benefits

Enjoy predictable and stable monthly payments during the first three years, giving you time to plan your finances with confidence.

  • Fixed interest rate for the initial 3 years
  • Lower initial monthly payments compared to traditional fixed loans
  • No private mortgage insurance required

Adjustable Rate After 3 Years

After the initial fixed period, the interest rate adjusts annually based on market conditions, which may increase or decrease your payments.

  • Potential for lower rates depending on market
  • Caps on how much the interest rate can adjust each year (max 1%)
  • Lifetime rate cap: max 5% above the initial starting rate

Streamline Refinance Benefits (IRRRL)

If you already have a VA loan, the streamline refinance option helps you reduce your interest rate and monthly payment with minimal paperwork and no appraisal required.

  • Lower interest rate and monthly payment
  • No appraisal or income verification needed
  • Closing costs can be rolled into the loan
  • Available for owner-occupied and VA-guaranteed investment properties

Additional Benefits Through the VA Homeowner Program

  • No pre-payment penalties
  • 100% financing available
  • No appraisal needed for streamline refinances
  • No income verification required for streamline refinances
  • Benefits analysis to ensure the program suits your needs
  • Up to two months of deferred mortgage payments
  • Escrow refund assistance, including taxes and insurance paid to date

Energy Efficient Mortgage (EEM) Upgrade

Finance energy-saving home improvements with up to $6,000 available through the VA EEM program to make your home more comfortable and reduce utility costs.

  • Includes solar panels, insulation, HVAC upgrades, and more
  • Combine with purchase or refinance loans

VA Hybrid Program Advantages

Why choose a VA Hybrid loan over a 30-year fixed?

  • Monthly Savings: Offers some of the lowest rates available, providing substantial savings and more money in your pocket each month.
  • Ability to Pay Off Other Debts: Lower initial rates free up funds to pay down other financial obligations.
  • Opportunity to Put More Toward Principal: Extra savings can be applied to principal, reducing your mortgage payoff time.
  • Predictable Planning for the Future: Fixed rate for 3 years; rate adjusts annually thereafter capped at 1% per year, with a 5% lifetime cap up or down.
  • Faster Recoup Period: Lower introductory rates without traditional homeowner fees make this a cost-effective option.
  • Program Flexibility: After the fixed period, rate may increase, decrease, or remain the same based on Treasury bill/index rates.

3/1 VA Hybrid Loan Specifics

This program is fixed for the initial three years, offering veterans the lowest interest rate available. It’s designed to maximize savings during the typical 3-5 year homeownership period, allowing veterans to accelerate mortgage payoff or clear debts.

3/1 VA ARM Details

  • Fixed Period: 3 years fixed interest rate
  • Adjustment Period: Annual adjustments after fixed period
  • Max Rate Cap: 1% max increase/decrease per year, lifetime cap 5% above initial rate
  • Example: Initial rate 2.25% can adjust to max 3.25% or min 1.25% after first adjustment, with yearly caps and a lifetime max of 7.25%

CLICK HERE TO APPLY NOW
CALL NOW: (801) 871-3739

Questions? Contact VA Help Center to learn how the VA 3/1 Hybrid Streamline Loan can fit your home financing goals.

Notice: It’s important to note that total finance charges may be higher over the life of the loan.