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VA Veteran IRRRL – Interest Rate Reduction Refinance

VA IRRRL

A VA IRRRL home loan offers a low cost, minimal documentation refinance for homeowners that already have a VA Veteran loan.

The VA interest rate reduction refinance loan program is a streamline refinance that offers no appraisal, no income verification, and the reduction of your interest rate of a minimum of .50%, thanks to new laws that were passed to keep predatory lenders from trying to strip Veteran's equity.

The VA Interest Rate Reduction Refinance Loan (IRRRL) sounds like it's one of those crazy Government programs that has more acronyms than benefit to homeowners, but that's not the case with this incredible Veteran's only streamline refinance loan.

Typically, streamline programs offer homeowners the opportunity to take advantage of lower interest rates without the cost and paperwork typically associated with refinancing your home mortgage. The IRRRL is no exception.

Benefits of a VA Streamline Refinance

Reduced Appraisal Requirements - In most cases, an appraisal is not required for a VA IRRRL streamline refinance loan.  In some cases however, an exterior only appraisal may be required to make sure the home is still there, and there are no obvious health or safety issues.  If this type of appraisal is required, there should be little to no cost to the Veteran.

No Income Verification - Eligibility is determined by the payment history on your current home loan, not your income.  As a result, your Debt to Income Ratio is not a factor when refinancing using a VA IRRRL, and only your employment will be verified, not your income.

Reduced Funding Fee - As a Veteran, part of your home loan benefit is that you can borrow up to 100% of the value of a home without paying mortgage insurance.  The VA does charge a Funding Fee equal to a percentage of the loan amount.  The funding fee is greatly reduced with a Streamline Refinance, and be waived with an eligible service related disability.

VA IRRRL Qualifying Test

The Veterans Administration will only allow a lender to offer a refinance if it benefits you.  Here's a quick quiz to determine if a VA IRRRL might be a good option for you.

  • Do you currently have a VA mortgage?
  • Have you made all of your payments on-time for the past 12 months?
  • Is your current interest rate .50% higher than what's available on the market today?

If you answered "YES" to all of these questions, then a streamline refinance is probably going to save you a boatload of money!