VA IRRRL Refinance

VA Streamlined Refinance Program also known as the Interest Rate Reduction Refinancing Loan (VA IRRRL) can be beneficial if you currently have a VA mortgage loan. It is considered a ‘paperless’ mortgage product, that can benefit a VA borrower to lower their VA mortgage or shorten their VA home loan term. Although, No credit score, appraisal, and/or income are required for by the VA, the lender may still request for the above.

The current VA interest rate on the new VA loan must be lower than the old loan unless you’re refinancing an VA ARM to a VA fixed rate mortgage. The VA certificate of eligibility is not required for this loan. A VA streamline mortgage loan may be accomplished with “no money out of pocket” by including all closing costs in the new VA loan or by making the new VA loan at an interest rate high enough to enable the VA lender to pay the closing costs.

The new VA mortgage loan may not exceed the sum of the outstanding principal balance on the existing VA home loan, plus fees and closing costs, including the VA funding fee and up to 2 discount points. Also, you may add up to $6,000 of energy efficiency improvements into the new VA loan.

No loans other than the current VA loan may be paid from the proceeds of the new VA loan. If you have a 2nd mortgage, the mortgage note holder must agree to subordinate that mortgage lien so that your new VA mortgage loan will be the first lien holder.