The Department of Veterans Affairs created the Interest Rate Reduction Refinance Loan to help America’s military servicemen and women refinance their underwater mortgages and reduce their monthly payments.
Benefits of IRRRL
At a time when many Americans owe more on their homes than the current market value and interest rates are hovering near record lows, the VA wanted to make it easier for veterans to refinance.
In the past, it would be difficult for borrowers, even veterans, to refinance if they didn’t have any equity in their properties. The streamline program doesn’t just make it possible, but also relatively simple.
The IRRRL will not require a new appraisal or full credit report, which means veterans will be able to reduce their monthly expenses without a big hassle even if they’re underwater. The refinancing program even allows veterans to refinance with no out-of-pocket money.
The VA’s IRRRL can help borrowers:
- Lower monthly payments
- Reduce interest rates
- Build equity faster
- Pay off loans sooner
VA Streamline Refinancing Eligibility
Veterans can only refinance a loan with an IRRRL if they originally financed the home purchase with a VA-guaranteed loan.
Borrowers will also have to:
- Show their original Certificate of Eligibility or have their lender use the VA’s email confirmation procedure in lieu of a certificate.
- Borrowers will not have to get a new VA Certificate of Eligibility.
- Since veterans can’t borrow more than the VA-guaranteed mortgage, any second mortgages will have to agree to be subordinate to the new loan.
Apply for IRRRL
The VA does not directly process its own loans and instead works with partners like Mortgage Solutions Financial. Our knowledgeable mortgage experts have been helping America’s servicemen and women finance and refinance their homes through the VA for years and know how the process works.
Contact our mortgage experts today. They can answer any questions borrowers might have and will efficiently process your refinancing application.