Veterans Administration Interest Rate Reduction Refinancing (IRRRL) Loan Programs are designed to refinance an existing VA loan in order to reduce the interest rate and save you money over the length of the loan. The VA IRRRL is a quick refinance with fewer requirements than a VA Cash-Out Refinance and usually does not require another appraisal of the property.
US Citizen
Active or previously served on active duty in the Air Force, Army, Coast Guard, Navy, or Marines.
Discharged or released from active duty under conditions other than dishonorable or
Members of the Reserves and National Guard are eligible upon completion of 6 years of service;
Surviving spouses of certain Veterans who were continuously rated for a service connected disability, but whose disability may not have been the cause of death are also eligible
FICO of 620 or higher
LTV ranges from 95% – Unlimited (including rehab in applicable)
Terms: 10,15, 20, 25, and 30 year fixed
Transaction Types:
○ Rate and Term Only
○ No Cash Out Refinance
Loan Amount:
○ No High Balance or Jumbo Loans.
Eligible properties:
○ 1-2 unit SFR or PUD
○ VA approved Condominiums
○ Manufactured homes (single and multi-wide)
○ 1-2 unit non owner occupied
■ Must certify that a veteran or spouse previously lived in property as their primary residence to utilize this IRRRL Refinance Option.
Mortgage History Requirements to Refinance:
○ Prove 12 months of “good standing” mortgage history or
○ Show 12 month combined history with no late payments (Mortgage and previous housing payments- rent, etc.)
■ At least 6 payments or more must have been made on the loan being refinanced
■ Prepayment of the current loan to meet the six month payment requirement is not allowed.
○ Refinance of a previously modified/restructured mortgage requires zero 30 day late payments in the past 12 months
■ 12 months of payment required from the date of modification.
■ Cash back cannot be greater than $500.
○ Verification of Employment (VOE) required demonstrating same or similar line of work for the most recent six months.
○ Same business for the most recent 2 year period.
■ Most recent quarterly tax payment,
■ CPA letter,
■ Current unexpired business license