Borrowers with VA loans have the option to easily refinance to a reduced interest rate through a special program. This is commonly called IRRRL which stands for Interest Rate Reduction Refinancing Loan. Any VA authorized mortgage company can provide this option. The following is an introduction to IRRRL VA home loan programs in MA.
Benefits of VA IRRRL
The VA does not mandate an appraisal, a credit check, or closing costs (except for a funding fee) on a refinance. These are some of the benefits of using the program. However, individual lenders will require an appraisal or credit check as part of their company risk assessment. Closing costs are almost always charged by lenders, but the categories and sum can range from one lender to another. VA guidelines allow their funding fee and any closing costs to be rolled into the loan so that veterans can refinance without out-of-pocket expenses. There is also an option to roll in the expense of energy improvements for the property. At Emery Federal, we can offer VA IRRL’s with NO CLOSING COSTS!
Qualifying for a Refinance
For IRRRL under the program, the existing mortgage must be a VA mortgage. The interest rate on the new loan must also be lower than that of the old mortgage (the one exception to this rule is when refinancing from an ARM to a fixed rate mortgage). Borrowers are not allowed to receive any cash proceeds from the refinance of the loan and no other loan, other than the original VA loan, can be included in the new loan. Veterans must also verify that they previously occupied the real estate as a primary residence. More qualification criteria may apply based on specific mortgage companies.
More on IRRRL VA Home Loan Programs In MA
Veterans with VA mortgages can use their existing mortgage company or go through a completely different one. Many mortgage companies are VA approved and can assist with IRRRL. The above information is offered only as an overview. This information is believed accurate but is not guaranteed. It was gathered based on resources available at the time the blog was written and is subject to change without notice. Always contact a local consultant for accurate details and advice. For further information on IRRRL VA home loan programs in MA, contact Christopher Graves at Emery Federal Credit Union via phone at 781-759-1200 x22 or email christopher.d.graves@gmail.com.