VA Streamline Refinance: Everything you need to know about VA IRRRL Program
(Interest Rate Reduction Refinancing Loan)
Also known as the VA Streamline Refinance or VA to VA Loan
The purpose of the VA IRRRL is to allow you to refinance your current mortgage interest rate to a lower rate and payment than what you are paying now.
VA IRRRL’s are very popular because they are one of the fastest and easiest loans to close… if you are working with a loan officer like Jackie who has expertise in closing these types of VA loans.
Benefits of the IRRRL program
- Up to 100% financing
- No Appraisal required
Recent Purchase and rates are lower now? You are eligible!
VA loan closing costs can be rolled into the cost of the loan, allowing veterans to refinance with no out-of-pocket expenses. Sometimes it is also possible for the lender to take the brunt of the cost in exchange for a higher interest rate on your loan.
Qualify for a VA Streamline, These are the requirements:
- No more than one 30-day late payment on your mortgage within the past year
- Your new payment for the IRRRL must be lower than the previous monthly payment. (Doesn’t apply if you are converting an ARM loan into a fixed rate)
- No cash back from the IRRRL.(Unless for certain energy efficient improvements)
- You must prove you currently live in the property.
- You need to have used your VA Loan eligibility on the property you intend to refinance. (Some call this a VA to VA refinance.)
Top 7 VA IRRRL Questions
1. Do I have to go through the appraisal process again when refinancing?
Great News! There is NO requirement for another Appraisal.
2. Is Certificate of Eligibility (COE) for an IRRRL Refinance necessary?
You used your Certificate of Eligibility to get your first VA loan, so it isn’t needed to qualify for an IRRRL refinance of your existing VA mortgage.
3. Can I receive cash-in-hand at my VA IRRRL Refinance closing?
Yes, you can receive up to $6,000 cash-in-hand at your IRRRL closing. The cash must be used for energy-efficiency improvements. In addition, you will receive a disbursement of your old “escrow” funds (taxes and insurance from previous lender)
If you are looking for additional cash out, we have other VA programs which allow 100% LTV and up to $250,000 cash out.
4. What is the maximum allowable VA IRRRL loan size?
There is not a maximum loan size limit for a VA loan. However, a VA Streamline Refinance will be limited to the existing loan balance plus any accrued late fees and late charges, plus typical loan costs and the cost of any energy efficiency improvements. See link here for loan sizes for each California County.
5. Do VA IRRRL loans qualify for the HARP program?
No, The VA IRRRL refinance loan is separate from the HARP program. Harp Loans must be owned by Fannie Mae or Freddie Mac.
6. Can I use VA loans for a ZERO money down mortgage?
Absolutely! VA loan programs allow for 100% financing with no down payment.
7. Does the VA set the interest rates for VA loans?
No, the lenders that are VA approved, set the rates and they are typically better than any conventional rate.
Today’s VA Loan Mortgage Rates
The VA Streamline Refinance is one of the easiest and fastest mortgage products available for Veterans today. If you have an existing VA loan, Call Jackie today at 949 600-0944 to get a VA IRRRL Refinance rate quote. Mortgage rates are super low.
It is a great time to take advantage of your Veteran benefits.
Jackie Barikhan is a Nationally Licensed Mortgage Advisor (NMLS# 914312)