For those Pensacola homeowners that already have a VA mortgage, there is a special refinance program called the VA IRRRL ( Interest Rate Reduction Refinance Loan) that can help you lower and payments. The VA IRRRL refinance can be done fast and easy since it’s streamlined and does not require much documentation.
Typically, there are no pay stubs, no W2s, no bank statements and no appraisal required. Since there is no appraisal required, there is no LTV (loan to value) limit and those who are still underwater can refinance because the home value is not an issue.
Can you get approved for a Pensacola VA streamline refinance (IRRRL)?
There are certain conditions that must be met to be eligibility for an IRRRL:
- You must have an existing VA loan.
- The current VA loan must be in good standing – not more than 1 late mortgage payments over the last year.
- The VA refinance must result in a better financial position for the borrower. The new mortgage interest rate/payment must be lower than the current monthly mortgage payments except:
- When the refinance is from an adjustable-rate mortgage (ARM) to a fixed rate mortgage.
- The homeowner wants to refinance for a shorter term.
- Or when energy-efficient improvements are added to the mortgage balance.
What are the benefits of a VA refinance?
While there are financial benefits with a VA refinance via lower monthly expenses, there are other reasons to use the IRRRL for refinancing:
- There is no need to prove VA eligibility again since the VA already has your COE.
- The required funding fee is lower than the original fee.
- There is no monthly mortgage insurance required
- Closing costs can be added to the loan. The veteran often has little or no closing costs involved with a VA IRRRL.
- You must only certify that you have previously occupied the home that is being refinanced. This means that this home can actually be a second home or investment property at the time of refinance.
- An IRRRL does not use additional VA entitlement.
- No appraisal is necessary.
- The borrower can use any VA lender for a VA refinance. You do not have to use your current loan servicer to refinance.
The VA IRRRL is a streamlined refinance that does not allow for cash-out except for energy efficient improvements. This streamlined process is in place because VA has already guaranteed the loan in the event of a default.
Knowing your payment history, they are reassured that you will continue to make your monthly mortgage payments on time. The application and closing process for the IRRRL is easier, however, the results are so much more beneficial to the VA homeowner. Read all the VA refinance FAQ’s here.
Serving all VA homeowners in Escambia County – Brent, Brownsville, Century, Cantonment, Ensley, Gonzalez, Molino, Muscogee, Myrtle Grove, Pensacola, Pensacola Beach. Call us or just submit the quick request form here – get pre-approved in just 15 min.