Is it possible to replace your present VA home loan with a new one in different terms? Absolutely. VA understands the impact of economic changes and how it can affect the borrower’s financial situation. With IRRRL VA or Interest Rate Reduction Refinancing Loan of VA home loans, you can modify your loan terms so it is still convenient for you to pay.
Notably, IRRRL also known as streamline refinance can only refinance a residential property on which you have utilized your VA loan eligibility already. This means it will reuse the VA entitlement the borrower has previously utilized and so it should only refinance a VA to VA loan.
Applying for VA IRRRL is easier compared to a VA loan application as it requires limited documentation. Knowing the following important things will ease your streamline refinance application.
- The loan proceeds of a streamline refinance should pay the current VA loan nothing more. For the veteran’s second mortgage, the borrower must concur to make it as a secondary lien so what comes as a first mortgage is the new VA loan.
- Unlike a typical VA loan application, the borrower will not be required to secure a Certificate of Eligibility or what is called COE. Better yet, he can bring the COE to the VA lender of his choice to show that he has previously utilized his VA loan entitlement.
- To proceed with the IRRRL application, the veteran borrower must certify that he has occupied the home property.
- The veteran borrower may have utilized his VA entitlement by replacing his eligibility for that of the property seller or by acquiring a VA home loan when he purchased his home.
Other IRRRL Facts
Other lenders might encourage you to refinance your VA home loan and give you misleading information. Don’t get trapped by these lenders. The following are IRRL VA facts that you should be aware:
- An IRRRL is possible with $0 costs by rolling all costs into the newly approved loan or increase the interest so the lender can pay all the costs conveniently.
- Under no circumstances can a lender provide you with a streamline refinance, but any VA-approved lender can process your IRRRL application.
- When applying for an IRRRL, there is no credit underwriting package needed.
- Eligible veterans must get in touch with a number of lenders so he can choose the lender that offers the best terms for him.
- An eligible veteran may not be given any cash from the proceeds of the newly approved loan.
- The VA loan interest may increase when refinancing from an existing VA ARM loan to a fixed rate loan.
Are you a veteran with a present VA loan and needs the IRRRL to lower your monthly mortgage payments? Or maybe you would want to make your monthly amortizations more stable? Find out if you can get a VA streamline refinance now.