VA Rate Reduction Refinance (IRRRL) aka Streamline Loan

Primary Purpose - To secure our Veteran's financial position by reducing their interest rate and monthly payment on an existing VA loan.

New Fixed Interest Rate - The interest rate on an existing loan must be lower in all cases except on an Adjustable Rate Mortgage (ARM) or a VA Hybrid loan where the maximum interest rate exceeds the current fixed rate.

Lower Monthly Payments - Payment must be lower than the existing VA loan unless an ARM is being refinanced, the term is shortened, or energy efficient improvements are included.

Eligibility - The veteran will be re-using his entitlement from the existing VA Loan and therefore should provide his/her lender with the original Certificate of Eligibility at the time of their loan application as it will be returned to VA and reissued directly to the Veteran evidencing the new VA Case Number.

Allowable Closing Costs - Closing costs on IRRRL loans are very closely regulated by VA in which case allowable closing costs customarily included in a new VA loan are as follows:

• 1 Pt. Origination Fee
• 2 Discount Points
• Title & Recording Fees
• VA Funding Fee (if applicable)
• Prepaid Taxes & Hazard Insurance

Maximum Discount Points - A lender can charge normal and reasonable discount points; however, the veteran cannot include more than two discount points in the new loan amount.

Cash-back - A veteran cannot receive cash back on an IRRRL.

Debt Consolidation – Consolidating a first and second loan, and/or paying off credit cards and revolving debt on a IRRRL is not allowed. The only loan that can be refinanced on a VA IRRRL is the existing first mortgage. All other real estate loans on title must be willing to subordinate. For subordination terms and conditions, please call Inman Mortgage Group at (800) 814-4656.

Appraisal Requirements - VA does not require appraisal reports on an Interest Rate Reduction Loan.

Credit Qualifying - VA does not require credit approval on an IRRRL although lenders qualifications do vary.

Income Verification - VA does not require verification of income except when the Veterans payment is increasing 20% or more from his/her existing payment.

For additional information and a FREE, No-Obligation Consultation call Inman Mortgage Group today as we're committed to exceeding our clients expectations and don't make promises we can't deliver!