To qualify for an IRRRL you must already have an existing VA loan you are looking to refinance. Approval is also very simple. This one of the easiest refinance options available to VA homeowners. Here’s the cliff notes version:

• Existing Loan must be a VA Loan. New loan will be a VA Loan.
• No income or employment information is required to be disclosed on the loan application
• An appraisal is not required
• No assets are required unless cash-to-close is exorbitant
• A mortgage only credit report is required to verify current mortgage history. Nothing else on your credit history is considered.
• Recoupment period for all closing costs and discount points (excluding pre-paids and funding fee) cannot exceed 36 months
• Loan must be properly seasoned (6 payments made AND 210 days have passed from first payment due date on the current loan and disbursement date of the new loan)
• The maximum loan term is the original loan term plus 10 years (example, if the original loan was a 15 year fixed, the maximum term of the new loan cannot exceed 25 years)
• Max incidental cash-back at closing is $500

Is it worth it? How would I benefit from an IRRRL?

With an IRRRL, you can potentially refinance at a lower interest rate than when your original VA loan was taken out. It gives existing VA homeowners like you a chance to take advantage of the current low-interest rates. If you are looking to reduce your monthly mortgage payment this might be a great opportunity.

You can also shorten a 30-year mortgage to a 15-year mortgage when you refinance with an IRRRL. Be aware that your monthly payment will probably be larger when shortening the term of your mortgage. However, depending on your goals and financial situation, this might be an opportunity to cut your number of mortgage payments significantly. You can also switch from an existing ARM (adjustable-rate mortgage) to a new fixed-rate loan.

How much does it cost? How do I apply?

Before making an application, it’s a good idea to have us prepare a total-cost-analysis and break-even analysis for you. This will include interest rate options (they change daily, if not more frequently), closing costs, and a cost savings comparison.

The VA funding fee for an IRRRL is only .5% which much less than other VA loans and there is an exception to this for disabled veterans or spouses of deceased veterans who died in service or from an injury sustained during service.

The good news? The amount of paperwork required for this streamlined loan is very minimal! If the numbers make sense, you will find this to be one of the easiest mortgages you’ve ever closed.

If you are ready to get started with an IRRRL, apply today! For more information, please contact our VA specialists at 1-208-388-0500.