VA INTEREST RATE REDUCTION REFINANCE LOAN (IRRRL)

The VA’s Interest Rate Reduction Refinance Loan (IRRRL), also known as a VA streamline or “VA to VA” loan, allows you to lower the interest rate on your current VA mortgage with little or no out-of-pocket costs. This loan option allows Veterans who are currently in a VA loan to refinance your VA loan to a lower interest rate or to refinance an existing Adjustable Rate Mortgage (ARM) into a fixed term VA loan.

This loan can be completed with “no out of pocket” money by rolling the closing costs and prepaid expenses (escrows) into the new loan along with up to 2 points in discount (should you wish to further buy down the interest rate).

VA IRRRLs do not require appraisals or a new Certificate of Eligibility. Income documentation is gathered to show ability to repay, but not used for qualification purposes.

Your current VA mortgage must be current at the time of the streamline refinance. Additionally, the existing mortgage must have had a minimum of six payments made to qualify.

Only the existing VA loan may be paid from the proceeds of the IRRRL. Any second liens must agree to subordinate to the new VA loan to allow it to remain in the first lien position.

Your occupancy requirement for an IRRRL is different from any other VA loan. For an IRRL you need only certify that you previously occupied the home.
VA’s funding fee is reduced to one-half of one percent of the loan amount on the VA IRRRL.

We are happy to help you reduce your monthly mortgage payment with this simple streamlined loan program. Please complete the brief application process or contact one of our VA specialists to get started.

VA’s funding fee is reduced to one-half of one percent of the loan amount on the VA IRRRL.  This fee is waived for all veterans who were injured while in service and receive disability compensation or have a disability rating of 10% or higher.  As of January 1, 2020 all Purple Heart recipients are exempt from paying the funding fee under the Blue Water Navy Vietnam Veterans Act of 2019.

Please call one of First Federal Bank’s VA loan specialists at 1-877-455-4677 or simply click the “apply now” button below and one of our VA Loan specialists will call you and review your options.