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.
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VA Home Refinancing
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Conventional Refinancing
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Cash-out refinancing
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Yes
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Yes
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Low documentation needed
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Yes, Streamline or Interest Rate Reduction Loan
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No
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Down Payment
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No Down Payment Required
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Down Payment Required
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Financed Amount
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Up to 103.15% of the sale price.
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10-20% down payment required
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Private Mortgage Insurance
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None
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Yes if Down Payment is less than 20%
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Funding Fee
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Yes in certain circumstances
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No
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Prepayment Penalties
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No Prepayment Penalties
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Yes in many circumstances
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VA Financial Hardship
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VA counseling for loan holders during hardship
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No, not by the VA
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Energy Efficient Improvements
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Yes up to $6000 for approved improvements
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No
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Investment Property
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Property must be owner-occupied
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Yes
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Our Veterans Administration Mortgage Loan Specialists are available to answer any questions you have.
Loan Services |
Home Services |
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This site is not connected with any government agency. If you would like to find out more information about benefits offered by the U.S. Department of Veteran Affairs, please visit the official U.S. government site for veterans' benefits at http://www.va.gov