What Does IRRRL For Veterans Stand For?

IRRRL For Veterans Explained

IRRRL for Veterans stands for Interest Rate Reduction Refinancing Loan on VA Loans. VA mortgage loan borrowers who currently have a VA Loan that is refinancing to another lower rate VA mortgage loan is doing a VA Streamline Refinance Loan which 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 VA mortgage loan refinances to lower mortgage interest rate VA Loan to lower the monthly principal and interest payments of their VA Loan. With the IRRRL for Veterans, VA Lenders do not require a home appraisal nor credit scores nor income documentation of the VA mortgage loan borrower. As long as the VA mortgage loan borrower has been current with their current VA Loan for the past 12 months, they can do an Interest Rate Reduction Refinancing Loan on their current VA Loan. The Veteran’s Certificate Of Eligibility is not mandatory. The VA mortgage 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: Closing Costs

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

A VA Interest Rate Reduction Refinance Loan is only doable if the Veteran homeowner has already utilized their Certificate Of Eligibility for a VA insured mortgage loan 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 and the new VA 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 VA mortgage loans. When a home buyer first buys a home with a VA Loan, the veteran homeowner certifies that they will occupy the home that they are purchasing and that is will be an owner occupant property. The good news and benefit with a VA Interest Rate Reduction Refinance Loan is that all the veteran needs to do is just certify that the homeowner has previously occupied it and does not have to occupy it. The IRRRL cannot go over the balance of the current balance of the original VA mortgage loan, in addition to allowable costs and fees as well as closing costs which includes the VA Funding Fee and up to two discount points. VA mortgage borrowers are allowed up to six thousand dollars of energy efficiency home improvements into the new VA mortgage loan.

If you are interested in doing a VA Interest Rate Reduction Refinance Loan, please contact me at 262-716-8151 or email me at gcho@gustancho.com. I am available 7 days a week, including evenings, weekends, and holidays to take your inquiries and answer all of your questions.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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