VA IRRRL Streamline Refinance 12/09/2024
Guidelines and Rates
WHAT IS THE VA IRRRL Streamline Refinance?
Veterans seeking to improve their existing VA loan terms can leverage the streamlined program known as the “VA Interest Rate Reduction Refinance Loan.”
This program offers simplified steps by eliminating the need for income, employment, asset documentation, and potentially even an appraisal. Additionally, reduced closing costs with the option to roll them into the loan and eliminate upfront financial burdens.
VA 30-Year Fixed Rate
5.25% (5.4% APR)
VA 15-Year Fixed Rate
4.75% (5.0% APR)
*Scenario: loan amount of $400,000-660 FICO-95%LTV- SFR-CA. 12/09/24
VA IRRRL RATES
VA IRRRL rates consistently rank among the most competitive mortgage options available. This is largely thanks to the government backing provided by the Department of Veterans Affairs, which allows the lenders to offer exceptionally attractive interest rates on these loans.
It’s important to remember that individual VA refinance rates will vary based on several factors, such as loan size, credit score, home value, property type and more.
HOW THE VA IRRRL STREAMLINE REFINANCE WORKS
Similar to other mortgage refinances, the VA IRRRL will pay off your existing mortgage with a new loan. The new loan will start at 30 or 15 years, depending on your chosen term.
However, the process for this program is different from a traditional refinance.
There is no income and employment verification requirement. You DO NOT supply pay stubs, W2s, or Tax Returns. Since this program is to be used on an existing VA loan the lender already knows you’re VA-eligible.
Lastly, there’s no home appraisal. Not only can this save you a week or two in processing time it also saves you on out-of-pocket costs.
VA IRRRL program Pros and Cons
While the VA IRRRL program boasts numerous advantages, it’s important to acknowledge the limitations and potential drawbacks involved.
Pros
- No income documentation required
- No employment verification required
- No appraisal required
- No out-of-pocket costs
- FICO score can be lower than a 620
- $6,000 cash back for energy-efficiency improvements
Cons
- Current loan must be a VA home loan
- No cash-out over $500 unless it’s for energy-efficiency improvements
- New loan must have a lower rate and payment
- Waiting Period of 210 days or 7 months
- Funding fee of 0.5% is added to the loan amount unless VA has 10% or more disability rating
How to qualify for a VA IRRRL?
- Existing Mortgage: Current loan has to be a VA Home Loan.
- Payment History: Current with no more than one late payment in the past 12 months.
- Occupancy: The property is occupied by the borrower.
- Net Benefit: The new payment and rate must be lower unless the loan is refinancing an ARM or the term will be shorter.
- Waiting Period: Current VA loan has to be open for at least 7 months or 210 days.
It’s a great time to talk to a VA loan specialist when you’ve made at least 5-6 payments.
ron caringal2024-11-29 Victor was easy to deal with. He made the effort to exhaust all possible means for him to meet my target loan amount given the predicament. Gary Chisholm2024-10-18 Victor was great and always avalible Joshua Cruz2024-10-18 I highly recommend Victor Santos, (OnPoint Mortgage Pro)to anyone looking for a trustworthy and dedicated mortgage broker. His expertise and commitment to client satisfaction truly set them apart! He made our mortgage closing as effortless and painless for us. Leona Evaristo2024-10-17 I had an outstanding experience working with Victor Santos at OnPoint Mortgage Pro. From the very beginning, he took the time to understand my unique financial situation and goals. He was incredibly knowledgeable about the mortgage process and guided me through each step with clarity and patience. What I appreciated most was his responsiveness; I could reach out with questions at any time, and he always made me feel valued and informed. He helped me secure a great rate and made the closing process seamless. I highly recommend Victor Santos, (OnPoint Mortgage Pro)to anyone looking for a trustworthy and dedicated mortgage broker. His expertise and commitment to client satisfaction truly set them apart! Sincerely Leona Evaristo Belinda Childers2024-10-12 Victor was a pleasure to work with he was very professional !! Lady T2024-10-10 My husband and I recently utilized Victor to refinance our home and it was a fantastic hassle free process. Victor explained everything very thoroughly and always made himself available to us when we had questions. The icing on the cake was the quick turnaround time too. We definitely recommend Victor and look forward to utilizing his services again in the future. BEST BEST2024-10-07 Victor was awesome! I could not ask for more from him. He made a whole loan process easy. He is highly recommended! eunice chun2024-10-07 Victor was so professional and very helpful during the entire our loan process. Highly recommend! KRE'O ROWLETTE2024-09-20 I would like to Thank Victor Santos and OnPoint Mortgage Pro for such a beautiful refinance transition. Victor was very instrumental in making things as easy as possible for us. Out of our prior refinance experiences this has been 100. Looking forward to working with Victor and OnPoint Mortage Pro in the near future. Thank you so much! James and Elouise Frye T E2024-09-04 My contact with Victor Santos was extremely pleasant throughout the whole refinance process. His professionalism, reliability and patience was a significant factor on why I chose to stay with OnPoint Mortgage Pro. He was informative, responsive, and returned all correspondence to answer questions/address any issue not only in a timely fashion, but he clearly explain the complex contract details which was particularly helpful for me. Victor effective communication was pivotal in fostering a transparent and trusting relationship, which was essential for me throughout the refinance process regarding a significant financial transaction. I highly recommend Victor Santos!!
Contributed by: Victor Santos NMLS#888844 Onpoint Mortgage Pro NMLS #2134550
Victor Santos is a licensed mortgage loan officer with over 20 years of experience. He has spent many years assisting homeowners and home-seekers in obtaining the optimal solutions for their mortgage needs.