VA Refinance Loan

About Refinancing VA Mortgages - Interest Rate Reduction Refinance Loan
 
Eligibility for  Interest Rate Reduction Refinance Loan
 
The VA Interest Rate Reduction Refinance Loan (IRRRL) enables you to lower your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease.  This loan can also enable you to refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage
 
IRRRL Summary
         •        When applying for the IRRRL, no appraisals or credit underwriting packages are required
         •        If IRRRL is done with "no money out of pocket" to the borrower, costs to the lender can be included in
​                  the new loan or by making the new loan’s interest rate high enough to enable the lender to pay the costs.
         •        If one is refinancing an existing VA ARM loan as a fixed rate loan, the interest rate may increase.
         •        Lenders are not required to offer IRRRL, however, any VA-approved lender of you choose may process                            your application for an IRRRL.
         •        Veterans are greatly encouraged to contact several lenders because terms and conditions of loans may                    vary.
         •        Word of Caution – The borrower is forbidden from receiving any cash from the loan proceeds.

The VA Funding Fee is applied at closing, unless the borrower is exempt. An IRRRL can only be made to refinance a property that you have already applied your VA loan eligibility. Thus, it must be a “VA-to-VA” loan refinance; it reuses the entitlement you originally used.

Our Veterans Administration Mortgage Loan Specialists are available to answer any questions you have.
VA Home Refinancing
Conventional Refinancing
Cash-out refinancing
Yes
Yes
Low documentation needed
Yes, Streamline or Interest Rate Reduction Loan
No
Down Payment
No Down Payment Required
Down Payment Required
Financed Amount
Up to 103.15% of the sale price.
10-20% down payment required
Private Mortgage Insurance
None
Yes if Down Payment is less than 20%
Funding Fee
Yes in certain circumstances
No
Prepayment Penalties
No Prepayment Penalties
Yes in many circumstances
VA Financial Hardship
VA counseling for loan holders during hardship
No, not by the VA
Energy Efficient Improvements
Yes up to $6000 for approved improvements
No
Investment Property
Property must be owner-occupied
Yes
               

Our Veterans Administration Mortgage Loan Specialists are available to answer any questions you have.