
IRRRL Mortgage Loans AKA VA Streamline
As the name suggests an IRRRL is an Interest Rate Reduction Refiance Loan.
- Main goal of an IRRRL is to allow a veteran to save money in monthly interest.
- Allow Veteran to refinance their loan in a streamlined manner
- No appraisal is required when applying for a VA IRRRL Loan.
- A VA IRRRL can be completed with no money out of pocked by the veteran.
- Veteran can refinance out of a VA Adjustable Rate Mortgage to a
higher interest as long as its going onto a fixed term. - On a VA IRRRL your will not be able to receive any cash out from the refinance transaction.
- IRRRL loans can only be used to refinance a property on which you have already used your VA loan eligibility on.
Other things to consider.
- Your Certificate of Eligibility (COE) is not required.
- If you have a second mortgage we will have to get the 2nd lien holder to subordinate that lien so the VA Loan will be in first position.
- The occupancy for a VA IRRRL is also different from other VA loans as a veteran only needs to prove they once occupied the home, bit not mandatory for an IRRRL.
- One of the best things about this loan is they require much less paperwork than the VA Purchase Loan.
- A VA IRRRL will let you refinance your high interest rate loan into a lower rate loan with minimal fees and costs as compared to the initial loan.
- How to Apply
IRRRL Funding Fee
Since a Veteran has already paid their VA Funding Fee in Full on their purchase loan for the home, the IRRRL Funding Fee is typically reduced.
- Most VA Borrowers will pay a .5% funding fee for their VA IRRRL Refinance loan.
- Veterans who had a service related disability that are deemed more than 10% disable that were honorable discharged are exempt from VA Funding Fees.
- The surving spouse of a Veteran who died of a service related disablity is also exempt from the VA Funding fee.
- If you want up to date information and accurate funding fee information check the VA Funding Fee Chart