One of our favorite loans to do at Texas Premier Mortgage is a VA Loan! A VA Interest Rate Reduction Loan is a VA refinance of your existing loan. 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 a few 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 fluctuate and this program is designed to save Veterans money by reducing their monthly interest rate and payment
- Homeowners who closed on their VA Home Loans prior to 2019 will want to review and take advantage of today’s low mortgage rates on VA Loans and benefit with a VA IRRRL
Mortgage Rates push to the low 3’s on a refinance and the lowest seen in many years, Any borrower with mortgage rates higher than 4.25% on their VA Loans may benefit from an IRRRL!
- 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, this is done internally to ensure there is a benefit to the loan and protect the integrity of the loan program. We will analyze your savings and closing costs in detail to review the amount of time it takes to recoup any closing fees.
VA Funding Fee And Closing Costs – VA Loans require borrowers to pay a VA Funding Fee
- 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 credits to offset closing costs
- No money out of pocket at closing
- Most homeowners will skip 1-2 months mortgage payments on a VA Streamline Refinance Mortgage
- Homeowners who closed on their VA Loans prior to 2019 may benefit from doing a VA Streamline Mortgage Refinance
For more information about our VA Mortgage Loans, their benefits and loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page.
Written By: Steve Head / Top Producing Loan Officer Servicing the entire State of Texas