What Are VA IRRRL Loans

In 1980, the Veterans' Disability Compensation and Housing Benefits Amendment introduced the Interest Rate Reduction Refinance Loan Program or IRRRL to give veterans the opportunity to reduce their monthly mortgage payments, convert adjustable-rate mortgages to fixed-rate mortgages, and change loan terms. 

What is a VA IRRRL Loan?

IRRRL loans allow Veterans Affair Borrowers to restructure their mortgage to get better interest rates or monthly payments. It was created to allow VA loan borrowers to stay on top of their mortgages and have the flexibility to adapt to changing interest rates.
A VA IRRRL is a mortgage refinance option for eligible veterans, active service members and surviving spouses who currently have a VA home loan. This is also called Streamline refinance. This VA loan refinance option has a relatively quick implementation period so that homeowners can start saving money on home payments quickly

Who is Eligible for a VA IRRRL?

You may be eligible for an IRRRL if you meet all of these requirements:

• Individuals who have a current VA loan that has been open for at least 7 months
• Individuals who are current on mortgage payments
• Individual must be an active-duty service member, reservist, veteran or surviving spouse

Benefits of VA IRRRL Loans

VA IRRRL loans allow veterans or active duty service members save money on their home's mortgage by refinancing their home for a current VA loan. VA IRRRL loans also benefit homeowners by:

• Reduce monthly expenses: refinancing with a VA loan can reduce your interest rate decreasing your monthly mortgage payments.
• Standardize payments: switching from an adjustable rate mortgage to a fixed rate mortgage can give you more stable payments without surprises month to month.
• Decrease hurdles: VA IRRL loans do not require a home appraisal or credit report making it easily achievable.
• Reduce funding fee: VA loans, unlike many others, don’t require mortgage insurance. Instead, you are able to pay a flat fee of 0.5% of the loan amount on closing day. This fee is also tax-deductible.

How Do I Get an IRRRL Streamline VA Loan?

Looking to refinancing your home and get the most out of your VA loan? Modern Lending offers quick and easy VA IRRRL Streamline Refinancing with no income or asses requirements. Contact us today to see if you are eligible for a VA IRRRL Loan.