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VA IRRRL Mortgage Lending Guidelines On VA Home Loans

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VA IRRRL Mortgage Lending Guidelines On VA Home Loans

This BLOG On VA IRRRL Mortgage Lending Guidelines On VA Home Loans Was PUBLISHED On April 10th, 2019

VA IRRRL is a fast-tracked streamlined refinance mortgage loan program for homeowners with a VA Loan.

  • Under VA IRRRL Mortgage Guidelines, borrowers with a current VA Loan can do a VA IRRRL with no home appraisal, no income documentation and limited documentation in as little as three weeks
  • There are two types of VA IRRRL: Credit Qualifying and Non-Credit Qualifying
  • Borrowers with higher credit scores should opt for the credit qualifying VA IRRRL and take advantage of the lower mortgage rates
  • Mortgage rates hit the highest levels in 2018 since the 2008 Real Estate Meltdown
  • The housing market has been stronger than ever in the past three years
  • Homeowners who closed on their VA Home Loans in 2018 can definitely take advantage of today’s low mortgage rates on VA Loans and benefit with a VA IRRRL
  • Mortgage Rates hit an 18 month low today with par rates at 4.125%
  • Any borrower with mortgage rates higher than 5.0% on their VA Loans may benefit from an IRRRL

In this blog, we will discuss the benefits of IRRRL for those with a current VA Loan.

What Is IRRRL 

IRRRL stands for VA Interest Rate Reduction Refinance Loan.

  • The Interest Rate Reduction Refinance Loan is available to qualified homeowners who have a current VA Home Loan
  • It offers great benefits in refinancing a rate and term on a current VA Loan with limited documents and paperwork
  • VA Cash-Out is not allowed with an IRRRL
  • Only rate and term refinance is allowed
  • Purpose of the IRRRL is to lower the existing VA mortgage rate and lowering the monthly mortgage payments by refinancing it to a new VA Loan with a lower interest rate
  • Homeowners with an adjustable rate mortgage can refinance their VA Loan to a fixed rate mortgage with very limited paperwork
  • There is no home appraisal requirement
  • The normal documents required for a full mortgage process is often not necessary
  • A new Certificate of Eligibility (COE) is not required with a VA Streamline Refinance Mortgage

In order to qualify for a VA IRRRL, the borrower needs to meet the net tangible benefit test.

VA Funding Fee And Closing Costs

VA Loans require borrowers to pay a VA Funding Fee.

  • There are instances where the VA Funding Fees can be waived for borrowers with service-connected disabilities
  • If a veteran is 100% disabled, then the VA Funding Fee is fully waived
  • Closing costs can be rolled into the loan balance. Lenders can offer lender credit for closing costs in lieu of a higher mortgage rate
  • In general, most homeowners do not have to pay a dime out of pocket
  • Most homeowners often get to skip two months mortgage payments when they do a VA Streamline Refinance Mortgage
  • Homeowners who closed on their VA Loans in 2018 can benefit from doing a VA Streamline Mortgage Refinance

As mentioned earlier, only rate and term refinance loans are allowed. Cash-Out refinance is not allowed with IRRRL.

Qualifying For VA Streamline Refinance Loan With A Direct Lender With No Overlays

Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no overlays on VA Home Loans. For more information on whether you can benefit from a VA Streamline Refinance Mortgage, contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are available 7 days a week, evenings, weekends, and holidays.

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