If you’ve VA eligible and currently have a VA loan, you already know you have the absolute best financing available for those seeking a mortgage with nothing down, low closing costs and competitive rates. There’s no monthly mortgage insurance, either. But there are other benefits of a VA mortgage that many may not yet be aware. It’s called the Interest Rate Reduction Refinance Loan, or IRRRL. Others in the industry sometimes refer to the IRRRL as the VA streamline refinance. Why? Because it’s drop dead easy to process and approve.

There is very little paperwork involved when using this streamline to refinance an existing VA loan. As long as the borrowers don’t take out any cash during the transaction, the loan application sails through. Let’s list some of the most popular features:


That’s right, no appraisal required. This saves you money but it also means there are no value considerations. Even if you owe more than what the property is currently worth it doesn’t matter, you can still refinance. Other loan programs can require a minimum amount of equity for a refinance but the VA IRRRL doesn’t care.


When you first applied for the original VA loan, you were asked to provide your pay check stubs, W2 forms and perhaps your federal income tax returns. Not so with the VA IRRRL program. Your lender doesn’t need income verification whatsoever. No pay stubs and no tax returns.


While the VA doesn’t require a specific credit score in order to qualify, most lenders ask for a minimum score of 620-640 when approving a VA purchase loan. With the VA streamline, there is no credit score required. As long as there have been no more than one payment within the past 12 months more than 30 days past the due date and none at all in the past six months, that alone satisfies the credit requirement.

If you’ve been thinking of refinancing your existing VA loan but didn’t think you could qualify due to credit, income or property value concerns, think again. The VA figures (correctly) that if you can handle your mortgage payments now you can certainly handle a lower one. And you can even refinance from an adjustable rate loan into a fixed rate as well. Finally, don’t forget you don’t have to use the same VA lender to take advantage of this very special loan program.

For more information or questions about VA IRRRL loans,
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