IRRRL- Interest Rate Reduction Refinance Loan

Interest Rate
Reduction Refinance
Loan
IRRRL
IRRRL.ORG
IRRRL.ORG
LENDER HOTLINE: 888-581-5008

IRRRL is a funny sounding name for a great
program available for Veterans who currently
have a VA loan. IRRRL stands for Interest Rate
Refinance Reduction Loan and it is also
sometimes called the VA streamline refinance.If
you are interested in the IRRRL program, you
will need to find a VA approved IRRRL lender who
can help you understand how to apply and what
the guidelines are. Each lender will have their
own rates, fees and may even have small
differences in guidelines – so it is important that
you speak with multiple VA approved lenders
who can help you understand how the program
could best work for you.
IRRRL.ORG

The IRRRL program is designed to help you
refinance your existing VA loan with a minimal
amount of paperwork – which is where the term
“streamline” comes from – “streamlined”
paperwork. There will be less paperwork to do
than when you originally got your VA loan. With
the IRRRL program, you don’t have to completely
re-qualify for a VA loan, in fact – many lenders
don’t require a minimum credit score or even an
appraisal to participate in the program.
IRRRL.ORG

IRRRL Program Highlights
You can participate in the IRRRL program with
your existing lender or choose to work with a
different VA approved lender.
VA requirements do not require an appraisal,
credit information, or underwriting, but your
lender may require these.
It is possible to roll in closing costs and fees so
there are no out-of-pocket costs.
Your new monthly payment must be lower than
your old monthly payment unless you are going
from an ARM to a Fixed rate loan or the term is
less than your old loan.
IRRRL.ORG

It is possible to get a new VA loan that is a fixed
rate or adjustable or hybrid fixed rate loan.
It is possible to finance in energy efficient
improvements into your IRRRL refinance, up to
$6000.
Cash back at closing is not allowed with the IRRRL
program.
At the time of closing, you must be current on
your mortgage and you can’t qualify for the IRRRL
program if you have more than 1 30 day late
payment on your mortgage in the last 12 months.
IRRRL.ORG

These are just a few of the highlights of the IRRRL
program – there are plenty of other great things
about the program depending on which VA
approved lender you work with. Remember – not
all VA lenders have the same rules for the IRRRL
program, some will have slightly different
guideline requirements. For example, some
lenders do not require an appraisal with the
IRRRL program, some will require an AVM or even
a full appraisal. Some lenders may not have a
minimum credit score, some will. This is why it is
important to shop multiple VA approved lenders
so you know what lender will be able to help you
based on your individual situation.
IRRRL.ORG

VA Funding Fee For IRRRL
Refinance
When getting a VA loan, generally speaking it is
required that you pay a “funding fee” – this fee is
commonly referred to as the “VA funding fee”.
The funding fee is designed to be paid by the
Veteran so that it reduces the cost of the loan to
the government because VA loans offer 100%
financing and no mortgage insurance.
IRRRL.ORG

Type of loan
Military category
First time VA loan borrower (The funding
fee for second time users who do not make
a down payment is slightly higher)
Down payment
The VA funding fee is a % of the VA loan
amount and varies on these things:
IRRRL.ORG

It is possible to either pay the VA funding fee at
the time of closing and it is also possible to “roll
it into the loan” – or finance the fee. Whether it
is financed or paid in cash – the VA funding fee
must be paid at closing.
IRRRL.ORG

Not All People Have To Pay the VA
Funding Fee
It is true that not all people who get a VA loan
are required to pay the funding fee. When
getting a VA loan, you don’t have to pay the fee if:
IRRRL.ORG

You are a Veteran receiving VA compensation
for a service-connected disability
or
You are a Veteran who would be entitled to
receive compensation for a service-connected
disability if you did not receive retirement or
active duty pay
or
You are a surviving spouse of a Veteran who died
in service or from a service-connected
disability.
IRRRL.ORG

IRRRL Lenders: What You Want To Know
Each lender will require slightly different things for
the IRRRL program – and if you have been turned
down by one lender, it doesn’t mean that you can’t
participate in the program. If you have a low credit
score, owe more than your house is worth or have
other special-needs in your situation, it is important
that you speak with multiple lenders to see which
one can best help you. Even if you have great credit
and lots of equity in your home, it is still important
to speak with multiple lenders because each one will
have their own rates and fees – and you might be
surprised to see how much you can save just by
shopping around a little bit!
IRRRL.ORG

T O L E A R N M O R E
IRRRL.ORG
CLICK HERE
IRRRL.ORG

Justin McHood is Americas Mortgage
Commentator and has been providing
Mortgage commentary for over 10 years.
INFORMATION PROVIDED BY:
Justin McHood
Mortgage Commentator
IRRRL.ORG

MORTGAGECOMMENTATOR.COM
LEARN MORE ABOUT MORTGAGE COMMENTATOR:
FACEBOOK.COM/MORTGAGECOMMENTATOR
@MORTGAGECOM_
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IRRRL- Interest Rate Reduction Refinance Loan

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IRRRL- Interest Rate Reduction Refinance Loan