VA IRRL: Interest Rate Reduction Loan
Do you need some mortgage payment relief?
The VA Interest Rate Reduction Refinance Loan (IRRRL) can:
This is a great option for those who are looking to reduce their monthly payment, buy a second home, or desiring to pay off debt.
See the following guidelines to see if you qualify:
To know more about refinancing you VA loan, contact us today!
The VA Interest Rate Reduction Refinance Loan (IRRRL) can:
- Lower your interest rate
- Refinance up to 120% of your home value
- Get up to 100% cash out
- Roll all your closing cost into the loan
This is a great option for those who are looking to reduce their monthly payment, buy a second home, or desiring to pay off debt.
See the following guidelines to see if you qualify:
- Currently have, or are eligible for a VA loan.
- For primary residence, second homes or investment properties.
- Funding Fee can be financed, or waived if you have a disability.
- No appraisal or credit underwriting package is required by VA.
- All borrowers on previous Note must be on new Note. Subordinate lender must agree to re-subordination.
- Maximum term is term of the original loan plus up to 10 years and not to exceed 30 years.
- The new interest rate must bear a lower interest rate than the loan it is refinancing (unless the loan is an adjustable rate mortgage).
- Subordinate financing may remain at max 125% CLTV (combined loan to value). The total loan amount (base loan amount + VA funding fee = Total loan amount).
- A credit report and 620 minimum credit score is required but sections V, VI and a-k of VIII of the application are not required to be completed. That means NO INCOME, NO ASSETS, NO PROPERTY VALUE. However, as of December 1, 2010, employment information for the borrower(s) is now required to be completed on the loan application (Section IV). Only a Verbal VOE (verification of employment) will be completed prior to closing.
- Borrower may not receive more than $500.00 cash at closing.
- No refinances are allowed within 6 months of the property being listed for sale.
- 0x30 payment history required over the previous 12 months.
- Borrower must have made a minimum of 6 payments on current mortgage with 0x30 pay history to be eligible for VA IRRRL.
- Borrower must credit qualify if: New principal and interest (P&I) increases more than 20% over previous Note P&I when the mortgage term is reduced or when refinancing from an ARM to a Fixed rate.
- New P&I increases more than 20% over previous Note P&I on a primary residence or when a borrower is removed from the Note.
To know more about refinancing you VA loan, contact us today!
