Are you researching the possible benefits of the VA IRRL program? This article should help!
Updated January 2018
VA IRRL Program: Interest Rate Reduction Loan
The VA IRRRL program comes by many names. For those who are not familiar with the acronym, it is more commonly known as the VA Streamline Refinance program. There are also those who refer to it as the “VA to VA loan.”
Here’s a quick FAQ about the program:
What is the program’s purpose?
The goal of the program is to lower your mortgage interest rate and reduce your monthly mortgage payment, except for when you’re refinancing and ajustable-rate mortgage to a fixed-rate.
Is the underwriting strict?
The US Department of Veterans Affairs does not enforce strict requirements for lenders regarding the underwriting process. So even though no apraisals nor minimum credit scores are set, many lenders will still require them anyway.
Do I need a COE to qualify?
For a refinance, a COE may no longer be required as your lender can utilize the department’s email confirmation procedure for IRRRL.
Is there such a thing as a no-cost closing?
No. This is false advertisement. There are still costs associated to refinancing your loan but you can choose to roll this cost into your loan balance – for a cost. Or, you can instead opt to pay the money upfront to avoid the extra interest payments.
Do I need to refinance with my current lender?
VA mortgage carrying homeowners are encouraged to shop around and contact different lenders. Any VA-approved lender can handle an IRRRL.
Can I take out cash from an IRRRL?
No, you cannot. The program is only possible if you have already used your eligibility for a previous VA loan and thus will be reusing that entitlement for the new loan. You may have either used this entitlement to buy your home or by substituing your eligibility for that of the seller for cases where the loan is assumed. Show your COE to the lender as proof of your entitlement.
Learn More or Get Started with your Interest Rate Reduction Refinance Loan
Start the VA IRRL refinance process now by filling out the form linked below!Click to See the Latest Mortgage Rates»