VA Interest Rate Reduction Loan
Are you currently in a home financed with a VA loan? The VA Interest Rate Reduction Refinance Loan (IRRRL), or also known as “VA to VA”, lowers your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.
Most times you will not be required to provide income documentation or other credit documentation. A drive-by appraisal will be required and we can finance up to 100 percent of the value of your home, but not provide any cash back at closing.
If you currently have a 2nd mortgage on your home, we cannot pay off that mortgage with an IRRRL. The 2nd mortgage holder will need to agree to subordinate so the VA loan is the first lien holder. If you wish to pay off the 2nd mortgage, we will need to look at a cash-out VA refinance.
On a VA loan, the VA guarantees your loan to the lender against a foreclosure loss and there is very little interaction with the VA. Any documentation needed from the VA, as a lender we get that for you and correspond with the VA on your behalf. We are happy to help you utilize the home loan benefits provided by the VA.