The VA IRRRL – Interest Rate Reduction Refinance Loan sounds like it’s one of those crazy Government programs that has more acronyms than benefit to homeowners, but that’s not the case with this incredible Veteran’s only streamline refinance loan.
Typically, streamline programs offer homeowners the opportunity to take advantage of lower interest rates without the cost and paperwork typically associated with refinancing your home mortgage.
The VA IRRRL is no exception.
VA IRRRL Qualifying Basics
Here’s a quick checklist for you to determine if you should look into this program further:
- Property must be a Single Family Residence – Condo/Townhome/PUD allowed
- 2-4 Unit properties are NOT PERMITTED
- Maximum 100% Loan to Value – Loan cannot exceed value of home based on a 2055 Exterior Inspection appraisal report
- Primary Residence Only – You must live in the home
- NO Reserves Required
- 30 Year Fixed Rate Term only
- VA loan being refinanced must be current for the past 12 months
- Minimum credit score is based on loan amount:
- Up to $417,000 – Minimum 640 FICO
- $417,001 – $650,000 – Minimum 660 FICO
- $650,001 – $700,000 – Minimum 740 FICO
There are a series of benefit worksheets and test that must be performed to ensure that you are benefiting from streamline refinance.
Eligible Veterans will be required to complete and sign a Rate Reduction Certification Form. This form must indicate that the total number of months to recoup ALL closing costs, whether included in the loan or paid at close, do not exceed 84 months.