IRRRL For Veterans Homeowners And VA Mortgage Process

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IRRRL For Veterans Homeowners And VA Mortgage Process

This BLOG On IRRRL For Veterans Homeowners And VA Mortgage Process Was UPDATED On November 6th, 2018

IRRRL for Veterans stands for Interest Rate Reduction Refinancing Loan on VA Loans.

  • Borrowers who currently have a VA Loan can refinance to another lower rate VA loan with the IRRRL For Veterans
  • VA Streamline Refinance Loan is the IRRRL for Veterans
  • Or Interest Rate Reduction Refinancing Loan
  • VA Streamline, or IRRRL, is when a homeowner with a VA Loan with a 30 year fixed rate mortgage refinances to lower mortgage interest rate VA Loan
  • They do this to lower the monthly principal and interest payments of their VA Loan
  • With the IRRRL for Veterans, Lenders do not require a home appraisal nor credit scores nor income documentation
  • As long as borrower has been current with their current Loan for the past 12 months, they can do an Interest Rate Reduction Refinancing Loan
  • The Veteran’s Certificate Of Eligibility is not mandatory
  • Lender will utilize the Department of Veteran’s Administration email confirmation procedure for the IRRRL instead of the Certificate Of Eligibility for the Veteran

IRRRL For Veterans And Closing Costs

An Interest Rate Reduction Refinancing Loan can be refinanced where borrowers does not have to come up with his or her own money for closing costs.

  • The closing costs on the VA IRRRL can be paid through a lender credit
  • Lender can cover most or all of the closing costs of the IRRRL in lieu of a higher interest rate on the new loan
  • In order for borrowers to be able to do a VA Streamline Refinance, borrower needs to get a lower mortgage interest rate on the new loan
  • This holds true unless borrower does a VA mortgage refinance loan from an adjustable rate mortgage, ARM, to a fixed rate VA mortgage loan
  • Borrowers do not have to use their current lender to do an Interest Rate Reduction Refinance Loan
  • They can choose any lender to do an IRRRL For Veterans
  • VA Streamline Refinance Mortgage Loans have closing costs
  • Closing costs includes the VA Funding Fee
  • Funding Fee can be paid through a lender’s credit
  • May be rolled into the new Loan
  • Or paid cash by borrower
  • IRRRL borrowers cannot get any cash back from the proceeds of the new IRRRL

A VA Interest Rate Reduction Refinance Loan is only doable if the Veteran homeowner has already utilized their Certificate Of Eligibility in a home that the veteran is intending to refinance.

  • The refinance needs to be from a VA Loan to another VA Loan refinance mortgage loan
  • The new Loan will reuse the entitlement the veteran has originally used

IRRRL For Veterans: Requirements

There are different IRRRL Occupancy requirements on Interest Rate Reduction Refinance Loans than other mortgage loans.

  • When a home buyer first buys a home with a VA Loan, homeowners certifies that they will occupy the home they are purchasing
  • Home buyers certifies it will be an owner occupant property
  • The good news and benefit with a VA Interest Rate Reduction Refinance Loan is that all that needs to be done is just certify that the homeowner has previously occupied it
  • They do not have to occupy it
  • The IRRRL cannot go over the balance of the current balance of the original loan balance
  • In addition to allowable costs and fees as well as closing costs which includes the VA Funding Fee and up to two discount points
  • Borrowers are allowed up to six thousand dollars of energy efficiency home improvements into the new VA mortgage loan

Borrowers interested in doing a VA Interest Rate Reduction Refinance Loan, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, including evenings, weekends, and holidays to take your inquiries and answer all of your questions.

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