A Fast Track to a Better Mortgage for Military Members: The VA IRRL
What is an IRRL?
A VA streamline refinance, also known as an IRRL (pronounced Earl) is a simplified loan with relaxed qualifications for service members and for service members and veterans.
An IRRL doesn't require an appraisal or go through the typical VA lender underwriting process. THAT SAVES A LOT OF TIME, PAPERWORK AND FEES!
HOW DOES AN IRRL WORK?
A VA IRRL is used to refinance one VA mortgage into another. It is simply an improvement on your old loan. This allows you potential for significant benefits - a lower rate, a lower payment or both.
Another helpful benefit is the ability to move from an adjustable-rate loan to a fixed rate loan. A much more secure mortgage package.
Lenders are big fans of IRRLS as they are far easier to navigate from a processing and paperwork process on their end.
Granted... You still have to qualify for the loan. Unfortunately the IRRL doesn't make that requirement go away.
CAN YOU GET CASH OUT FROM AN IRRL?
Unfortunately not (you can use a VA Cash-out Refinance for that... article coming soon on that one.)
There is one exception however, the Energy Improvement Mortgage (EIM). This type of mortgage can be used in conjunction with any VA refinance, including IRRL. An EIM allows you to add the cost of some energy-efficient improvements into your loan.
THE IRRL REQUIREMENTS
Aside from meeting the most basic VA loan eligibility requirements, the rules for VA streamline refinances are relatively lax. You don’t even have to live in the home to qualify for a VA IRRRL. That means you can use it to refinance a house you’re currently renting out. You’ll need to certify that you previously lived there.
You won’t even need a new Certificate of Eligibility for an IRRRL.
You may qualify if:
You’re an active-duty military member or veteran who meets length-of-service requirements.
You’re the spouse of a prisoner of war or service member who’s missing in action; the unremarried spouse of a military member who died while on active duty or from a service-connected disability; or a surviving spouse who remarries on or after age 57.
The property you want to buy meets safety standards and building codes.
You meet the lender’s requirements for credit and income.
Efinity Go makes applying for an IRRL even faster with our online automated system. Our technology makes sure the process of getting approved for your loan and dream home moves as quickly as possible.