This Federally insured loan program was created by the Veterans Administration in order to help veterans and active duty members, who currently have VA mortgage.
The VA Interest Rate Reduction Refinance Loan (IRRRL) allows Texas Veteran homeowners who have a existing VA home loan to refinance and take advantage of lower mortgage interest rates and monthly payment. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.
This VA loan guaranty program, which is also referred to as IRRRL (Interest Rate Reduction Refinancing Loan Program), is straightforward and simple for US Veterans and active duty members to qualify for.
You may see it referred to as a VA Streamline, VA IRRRL or a VA to VA Loan.
Over the last 8 years VA Loans have accounted for 95% of our business, choose a VA loan expert!
We are located in San Antonio, Texas and are a VA Approved lender and Licensed Mortgage Broker and have been specializing in VA Loans throughout Texas since 2002.
We can help you refinaince with expert service, fast closing and very low fees.
For IRRRLs, the veteran or the spouse of an active service member must certify that he or she previously occupied the property as his or her home. This is different than the requirement for non-IRRRL VA loans that the veteran must intend to personally occupy the property as his or her home.
The maximum loan term is the original term of the VA loan being refinanced plus 10 years, but not to exceed 30 years and 32 days.
The VA IRRRL must replace the existing VA loan as the first lien on the same property.
Any second lien-holder would have to agree to subordinate.
The borrower cannot pay off liens other than the existing VA loan from IRRRL proceeds.
The veteran (or surviving co-obligor spouse) must still own the property.
There is a .5% funding fee required by the VA for using the IRRRL program to refinance your home. This fee can be fully financed which means it's "rolled into the new loan amount". If you have a VA Disability Rating from the VA, you could be Exempt from the VA Funding Fee.
These are exemptions to the VA funding fee.
See the VA Funing Fee page to learn more.
Refinance could lower foreclosure risk - If you have an (ARM) adjustable rate mortgage, your housing bill may very well INCREASE when the fixed period expires. Depending on your exact mortgage terms, which is usually anywhere from 3-5 years.
It's not uncommon for your interest rate to jump dramatically - 2 to 5 percentage points after your ARM expires forcing you into conventional "refinance". The results can be devastating financially as you may not be able to afford to keep your home.
If you NEED to get out of an ARM and into a fixed rate mortgage! IRRRL can help you accomplish this.
If you’re not sure you have an adjustable rate mortgage, check with your mortgage company ASAP, you need to know when the adjustable period expires so you can take action and get into a fixed rate mortgage using the IRRRL program.
It's quite common that you may NOT realize you have an ARM! It could have been the way the loan was explained to you and didn't realize the interest rate could adjust after 1 to 3 years. If that's the case and you are Vet, it's time to take action NOW!
Take advantage of lower interest rates - What if today's interest rates are lower than the interest rate you are currently paying?
If you simply want to reduce your monthly payment, an IRRRL may drastically reduce the overall dollar amount spent on interest by lowering your interest rate.
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We are located in San Antonio, Texas and are Licensed Mortgage Broker and a VA Approved lender and proudly boasts an A+ rating from the Better Business Bureau.