IRRRL stands for Interest Rate Reduction Refinancing Loan. It can also be referred to as “Streamline” or “VA to VA.” This loan type is used to reduce the interest rate on your home loan, resulting in a lower monthly mortgage payment, and it’s exclusively available to Veterans.
If interest rates have significantly dropped since you originated your mortgage, you’ve made at least six payments on your mortgage, and your original mortgage was a VA loan, you are most likely eligible for this refinance option.
You do not have to use your current lender in order to apply for or process an IRRRL, which makes this a great opportunity to shop around for a better rate. A better rate means putting additional money back in your pocket each month as you pay less toward your mortgage interest.
The IRRRL process is much faster than a credit qualifying loan. While a cash-out option is not allowed with an IRRRL, we are happy to talk through other loan and refinancing options with you if you need cash for life’s needs.
There is no credit qualification required and other standard mortgage requirements (appraisal, credit reports, income verification, etc.) are limited. VA charges a funding fee of 0.5% of the loan amount but this can be included in the loan.