Sometimes also called a "VA-to-VA" loan, the VA IRRRL is designed to let you refinance your veteran home loan to a new one and either lower your interest rate, transition from an adjustable-rate loan to a fixed-rate loan or both. VA IRRRLs are designed to be easy to take out and close quickly. The VA IRRL program requires that there is a net benefit to the borrower either by reducing the loan payment or getting the borrower out of an adjustable rate mortgage.
VA Requirements for an IRRRL
The stringent VA requirement to have your Certificate of Eligibility gets waived for an IRRRL. Since you had obtained one to get your original veteran home loan, it gets carried over to your IRRRL refinance loan. Disabled veterans may also qualify for a VA funding fee waiver.
The IRRRL only works when you refinance an existing VA home loan. Currently available only with fixed rates, you can choose any loan term from 10 to 30 years. So, if you're already seven years into a 30-year loan, you can simply refinance your loan for a 23 year term to stay on the same schedule. Thanks to its government guarantee, you can roll all of your closing costs into the new loan. The minimal out of pocket expense allows you to take advantage of the program to lower your monthly payment or convert an adjustable rate loan into a fixed term loan.
Choosing an VA IRRRL Lender
The VA doesn't limit your choice of lenders, provided the lender is VA approved. You don't have to use your current mortgage provider or servicer to refinance your existing VA home loan. It's always best to use a lender that is experienced with the VA IRRRL program as these guidelines do change frequently. The best way to ensure you have the most current information is to contact a lender experienced with VA home loans and find out what the VA requires.
Qualifying for the Globe Mortgage IRRRL
When you take out an IRRRL through Globe Mortgage Inc, you get to take advantage of VA lending terms that help you get qualified quickly. The IRRRL can be well over 100 percent of your home's value because we do not require an appraisal or automated valuation method. Primary, Second and Investments homes are eligible as long as the existing loan already has a VA home loan. There is no prepayment penalty on any of our loans. The VA IRRL program's does not have ANY income, credit score requirements nor are mortgage late payments in the last 12 months a factor.