The VA IRRRL (Interest Rate Reduction Refiance Loan) program is an incredible refinance opportunity which you can use to lower the rate and payment on your current VA Loan. Many times, this can be done with little or no closing costs!
The VA IRRRL allows you to essentially convert your existing VA Loan to a new one with a lower rate and payment. The other term for a VA IRRRL is a “streamline” refinance, because the process is fast and easy.
The first step to determining your eligibility is to talk to a VA Loan specialist about your options and the savings you will realize. It’s important to know your savings going into the transaction, so that you know it makes financial sense. In most cases it does because of the fact that we can do your VA IRRRL with no closing costs, so you will have a benefit from day one. You will even get to skip a monthly mortgage payment!
Qualification standards are not difficult. Although VA will state that there is no credit check or minimum credit score requirement, lenders have “overlays” or additional requirements above what VA requires. Most lenders have a minimum credit score of 600, and you will get a better rate if you are above 640. You must also be 2 years out of a bankruptcy.
Although VA guidelines also state that you will not need an appraisal, in some cases we will need one. You will get a much better rate if you owe less on your home than it’s worth (up to 100% of your home value is acceptable), but can still obtain a VA IRRRL up to 125% of your home value.
We will not need to verify your VA home loan benefits through ordering a new certificate of eligibility, because you already have your benefits confirmed due to the fact that you have a current VA Loan. The VA funding fee is low, only .5% of your loan amount (ie on a $200,000 loan the funding fee would be $1000), and is either financed into the new loan, or in some cases we can pay the VA funding fee for you, meaning you will not have to bring anything to closing.
You can find out what kind of rate you will qualify for by giving us a call in the office. The first step to getting started is to fill out a loan application and have your credit checked. However, we don’t believe in high-pressure “sales” tactics, and instead will give you honest advice and straight answers to your questions. We would be honored to help you, and your service to our country means the world to us!