What Is the VA IRRRL?


So what is the VA IRRRL? You may have once heard someone refer to a “VA Earl” and wondered what, or who, they were talking about. Well, what they were actually saying was “VA IRRRL.” IRRRL is an acronym that stands for Interest Rate Reduction Refinance Loan. The VA IRRRL is also known as the VA streamline refinance, or the VA-to-VA loan. It’s a quick and easy VA refinance option that is very popular among veteran and military homeowners and is our specialty here at Low VA Rates.

What is the VA IRRRL?

The VA IRRRL program is a VA refinance option  designed to save homeowners money, period. When lenders take customers through the IRRRL, they are required to lower the borrower’s interest rate. Through the IRRRL, borrowers can change the term or monthly payment of their loan. If rates are favorable, borrowers can also use the IRRRL to transition from an ARM to a fixed rate, and vice versa. IRRRLs come together quickly, even in as little as 10 days; you don’t need to re-appraise the home, and the Certificate of Eligibility you received from your lender when you got your first VA loan will suffice as your proof of eligibility for the IRRRL, which significantly reduces the amount of paperwork. Like regular VA home loans, the IRRRL also requires no down payments.

IRRRL Facts for Veterans

The following are some of the VA IRRRL facts for veterans. When you apply for an IRRRL, no credit underwriting package or appraisals are required. You already went through a thorough underwriting process when you got your original VA loan; why do it all again? Borrowers can also close on their IRRRL with very little money out of pocket. This is achieved by rolling all closing costs into the principle balance of the loan. The loan can also be structured to make the lender responsible for closing costs. Best of all, the Interest Rate Reduction Refinance Loan is bound to get you a lower interest rate. It’s right there in the loan’s name.

When May a Borrower Take Out an IRRRL?

We at Low VA Rates are proud to have no seasoning requirements attached to our loans. This means you are eligible for refinancing one day after your loan closes. You don’t have to have been in your mortgage for a long time to qualify for refinancing. If there’s a lower interest rate available, it’s our job to get you there. Naturally, you can only use the IRRRL to refinance your existing VA loan. Additionally, only VA loans can be refinanced using the IRRRL. This is why the IRRRL is sometimes referred to as the VA-to-VA loan. VA loans are also assumable, so you as a buyer can inherit a seller’s eligibility.

Another requirement concerning the VA IRRRL is this: if you have a second mortgage, you’ll have to subordinate that lien to the VA loan that is being streamline refinanced. While VA loans can only be used on primary residences, you can streamline refinance properties that you no longer live in, such as investment properties. All you need to do is prove you once lived there.

Some VA lenders will require you to be current on your mortgage before your refinance. At Low VA Rates, we allow for one payment to be no more than thirty days delinquent.  However, you must explain the delinquency to your loan officer, and together, you and your loan officer can formulate a plan to get you current again. We understand that maintaining a mortgage can be difficult, and life is full of the unexpected. If you’re having trouble getting refinanced, talk to our loan officers and we’ll see what we can do to get your mortgage refinance-ready.

Very Low VA Rates

We’ve refinanced countless veteran homes using the Interest Rate Reduction Refinance Loan here at Low VA Rates. We know the process backwards and forwards, and we promote the loan because we know it works. We’ve helped tons of families save money on their mortgage through the IRRRL. Above all, we strive to provide our clients with the VA interest rates as low as possible. ($250 is yours if we cannot)




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*Annual savings calculator based on 2015 monthly average savings extrapolated year-to-date.