VA Streamline Refinance

IRRRL stands for Interest Rate Reduction Refinancing Loan.  It is also commonly referred to as  a " VA Streamline" or a "VA to VA" Refi.  With the exception of refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a VA guaranteed fixed rate, it must result in a lower interest rate.  When refinancing from an existing VA ARM loan to a VA fixed rate, the interest rate may increase due to the fact that the terms of a fixed rate are generally considered more advantageous to the veteran.

An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance.  It must be a VA to VA refinance, and it will reuse the entitlement you originally used.  You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan. 

If you have your Certificate of Eligibility, we get a copy to show the prior use of your entitlement but many times can use the VA email confirmation procedure for the IRRRL in lieu of a certificate of eligibility. 

The occupancy requirement for an IRRRL is different from other VA loans.  When you originally got your VA loan, you certified that you occupied or intended to occupy the home.  For an IRRRL you need only certify that you previously occupied it.

This makes obtaining the VA IRRRL loan one of the simplest loans on the planet!  There is no income or credit qualification necessary and even if you have had other credit issues, as long as you have not had more than one 30 day late on your current mortgage in the last 12 months and you are lowering your interest and your payment, you qualify!  In fact, VA warns that you will even qualify if your payments are going up with a an adjustable to fixed rate refinance.  

Although they do warn the veteran to be certain that if there is a large increase in your payment as a result of the new fixed terms, the borrower should be careful to be certain that the new payments are within their affordability.  This is obviously not an issue when the payments are reducing as a result of lowering interest rates.

Another fantastic feature on this program is that VA allows the veterans to include all costs of the loan and up to $6,000 for any energy efficiency improvements made to the property.  Veterans can utilize this program for all of the following:

• Lower your existing VA interest rate with no out of pocket costs
• Change your existing VA Adjustable Rate Loan into a Fixed Rate
• No Appraisal Required
• No credit Qualification (Cannot have more than 1 x 30 day late on existing mortgage)
• No Income or employment verification required
• One loan funds as another starts allowing you to skip up to 2 monthly payments!

The veteran cannot receive any cash back as a result of the streamline refinance transaction, however, the results of skipping two payments, the refund of your existing impound account and lowering your monthly payment is as good as cash in the bank…and does become cash in the bank when your refinance closes, and then again when your existing lender sends back your impound account from the old loan!

It’s quick and easy to see if you qualify and to see how much you can start saving every month.  Click on the link below and let us show you how much money an IRRRL, VA Guaranteed streamline refinance can save you.