In order to qualify for a VA IRRRL refinance, your current mortgage must be a VA home loan. Other requirements for the IRRRL include: You are current on payments with no more than one 30-day late payment within the past year.
Who is eligible for this program?
Interest Rate Reduction Refinancing Loan (IRRRL) – VA does not require a COE for IRRRL cases. The user should just print the IRRRL case number screen since it contains all of the information needed. However, the COE is available if the Veteran's information needs to be corrected or updated (e.g. funding fee exemption).
k. Who Can an IRRRL be Made to?
| Parties Obligated on Old VA Loan | Parties to be Obligated on new IRRRL | |
|---|---|---|
| 1 | Unmarried veteran | Veteran and new spouse |
| 2 | Veteran and spouse | Divorced veteran alone |
| 3 | Veteran and spouse | Veteran and different spouse |
| 4 | Veteran alone | Different veteran who has substituted entitlement |
Verification of income for all borrowers on the VA streamline is not required. That means unlike the original VA loan when pay check stubs, W2 forms and tax returns were provided, the IRRRL requires no income verification whatsoever.
The VA says the "occupancy requirement for an IRRRL is different from other VA loans. ... VA IRRRL benefits can lead to monthly savings or a fixed-rate loan which can be a good deal for many qualifying veterans and military families. At least it's worth a look.
IRRRL borrowers who are not exempt will need to pay the VA Funding Fee. The good news is that this fee is significantly lower for an IRRRL (0.5 percent) compared to the fee for first-time and subsequent purchase and Cash-Out refinance loans. For example, the funding fee on a typical $200,000 loan would be $1,000.
IRRRL: Go from ARM to fixed
You can use a VA streamline refi to trade your adjustable-rate mortgage for a fixed-rate loan. ... If you want to move to a shorter term — say, from a 30-year to a 15-year mortgage — you can do that, too.
How many times can someone refinance their home with the VA Streamline program, sometimes called the VA to VA loan and also known as the IRRRL (interest rate reduction refinance loan)? Answer: As many times as it makes sense.
For an IRRRL you need only certify that you previously occupied it. The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.
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