IRRRLs offer great benefits for homeowners looking to reduce their monthly payments. With Blake Mortgage’s expertise in dealing with mortgage plans, you can rest assured your process will be handled professionally and efficiently throughout all the steps involved towards achieving financial freedom through lower rates!
Overview of Interest Rate Reduction Refinance Loan (IRRRL)
- Designed to help veterans lower their monthly payments by allowing them to refinance with interest rates competitively low within the VA loan program.
- No new credit check is required and doesn’t require large out-of-pocket expenses.
- Can lower monthly payments by purchasing points.
- No appraisal or income verification is required.
- Funds can be used to pay closing costs and other associated expenses.
- Can be completed with minimal paperwork and a streamlined process.
If you are a veteran seeking relief from your mortgage payments, an Interest Rate Reduction Refinance Loan might be the perfect solution. With interest rates and fees competitively low within the VA loan program, you can lower your monthly payments and save money each month.
Reach out today and let us help you get the financial freedom you deserve!
Am I eligible for an IRRRL?
You may be eligible for an IRRRL or Interest Rate Reduction Refinancing Loan. To partake in this opportunity, all of the following must be true:
- You have a current VA-backed home loan.
- You are using IRRRL to refinance another one.
- You can certify that you either currently live there or used to previously.
If applicable, remember the second mortgage holder needs consent to make the new loan the first priority. Let us help secure your financial future today!
Borrower Criteria
- An IRRRL can only be made to refinance a property on which the borrower has already used their VA loan eligibility, allowing them to reuse their original entitlement.
- No income limits or credit review is performed for this program.
- Eligible borrowers must have occupied and/or owned other properties; single-family homes, condominiums, and manufactured homes are accepted.
- The VA loan program is exclusively for veterans and, in some cases, their spouses. No Certificate of Eligibility is necessary, and lenders can verify eligibility through an email process instead. Disabled veterans are usually exempt from the funding fee associated with the loan (0.5%-1%).
Loan Criteria
- VA refinances are available for any cash-out amount of up to 100% of the value of your home.
- VA refinancing can provide borrowers with a loan that exceeds existing VA loans plus funding fees and has no LTV limit set by VA.
- No down payment or homeownership counseling is required.
- Mortgage insurance is not required for an IRRRL, and no credit review is performed.
- Cash-out refinances loans are generally prohibited, and the lender sets terms.
- A funding fee of 0.5 – 1% may be financed or paid in cash for an IRRRL loan to make energy efficiency improvements.
Benefits of an Interest Rate Reduction Loan
VA loans provide competitive pricing and terms, making them an attractive option for lenders. Additionally, they are supervised institutions that receive automatic authority to originate and close with a VA guarantee, which reduces the difficulty of entering this specific area of the mortgage business.
Participation also benefits from favorable CRA consideration dependent on the borrower’s location or income status.
Why Might I Want to Get an IRRRL?
An IRRRL can be a great way to get started with refinancing your loan. It offers lower interest rates, a streamlined process, and minimal paperwork. Additionally, it can help make your monthly payments more stable by moving from a loan with an adjustable or variable interest rate to one that is fixed.
You can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most cases and more in certain high-cost counties. Plus, you can use the loan to cover closing costs and other associated expenses.
Blake Mortgage is here to help you take advantage of this opportunity and get the financial relief you need. Contact us today for more information about IRRRL!
How Do I get an IRRRL?
Find a Lender
You can get an IRRRL through a private bank, mortgage company, or credit union—not directly through the VA. Compare lenders and fees to find the best option for you.
Note: if you have a VA home loan, be wary of any offers that seem too good to be true. Claims that you can skip payments or get low-interest rates are possible signs of a misleading offer.
Provide All Needed Information
Provide the lender with proof of your eligibility, such as a Certificate of Eligibility (COE). You can get your original electronically through the VA Home Loan program portal if you don’t have it.
You’ll also need to provide other personal information and documents, such as proof of income, employment history, and current residence. Your lender will provide a list of all needed documents.
Follow the Closing Process on the IRRRL Loan and Pay Your Closing Costs
Once you’ve submitted your information, you can move forward with the closing process on your IRRRL loan. You may need to pay the VA funding fee, closing costs, and other fees associated with your loan.
Your lender will provide a Good Faith Estimate and Closing Disclosure that outlines all fees, costs, and payments. Make sure to review them carefully before signing any contracts.
Once everything is finalized and signed, your loan will be complete. Congratulations—you’ve taken the first steps towards a more secure financial future with an IRRRL loan!
Now that you know more about the VA funding fee and other closing costs of getting an IRRRL contact Blake Mortgage today to learn more about the process and how our team can help you take advantage of this great opportunity.
For more information about the VA Funding Fee and other closing costs associated with getting an IRRRL, visit the VA Home Loan program portal. You can also contact Blake Mortgage with any questions you may have about your home loan or IRRRL. We’re here to help you make informed decisions about your financial future.
