WHAT IS A VA IRRRL?
A VA IRRRL, or Interest Rate Reduction Refinance Loan, is a refinancing program designed for veterans, active-duty service members, and eligible surviving spouses who already have a VA loan. Commonly referred to as a “VA streamline refinance,” its main goal is to reduce your VA Mortgage rate or switch to an adjustable-rate mortgage (ARM) to a more stable fixed-rate mortgage.
Arbor Home Loans is dedicated to helping you understand and navigate your options and take advantage of the benefits they can offer our veterans, which makes us one of the best VA loan lenders.
VA IRRRL Key Features:
- No Appraisal Required: Often, an appraisal is not necessary, making the process faster and simpler.
- No Income Verification: In many cases, lenders do not require income verification, further streamlining the process.
- Limited Out-of-Pocket Costs: Closing costs can be rolled into the loan, and sometimes no out-of-pocket expenses are needed.
- No Need for a New Certificate of Eligibility (COE): If you’ve used your VA entitlement to get your current loan, you generally don’t need a new COE.
Eligibility Requirements:
- You must have an existing VA loan.
- The new loan must provide a tangible benefit, such as a lower monthly payment or a shift from an ARM to a fixed rate.
- No more than one late payment in the last 12 months is typically allowed.
Advantages of a VA IRRRL:
- Lower Interest Rates: The main advantage is the potential to secure a lower interest rate, reducing monthly payments and overall interest paid over the life of the loan.
- Faster Process: The VA IRRRL process is quicker compared to other refinancing options because it typically involves less paperwork, no appraisal, and no income verification.
- No Occupancy Requirement: Unlike the original VA loan, there’s no requirement to live in the property. As long as you previously lived there, you can still qualify, even if you’ve moved.
- No Prepayment Penalty: There are no penalties for paying off the loan early.
Bottom Line
A VA IRRRL is an excellent choice for veterans aiming to lower their interest rate and save on mortgage payments with minimal effort. Ask your Arbor Home Loans Mortgage Loan Originator about your options today!