Refinancing

There are essentially two types of VA refinance programs, Cash-Out and Interest Rate Reduction Refinance Loans (IRRRLs for short), which offer a streamlined way for a borrower to refinance their VA guaranteed home loan to a lower rate, or from an adjustable to a fixed rate loan. 

Any veteran can qualify for a cash-out refinance of their existing VA home loan at up to 100% of the appriased value of their home plus the costs of any qualifying energy efficient improvements up to $6,000 and the VA funding fee. Traditional VA income and credit qualifications apply to these transactions and cash-out may be used for virtually any purpose.

Interest Rate Reduction Refinancing Loans (IRRLs) were authorized in 1980 and afford the veteran the opportunity to take advantage of lower mortgage rates without the time and expense of a traditional mortgage refinance. With an IRRRL, an existing VA guaranteed loan would be refinanced to a lower rate or from an ARM to a fixed rate mortgage. No cash-out is permitted with the exception of energy efficient improvements included in the loan, and allowable closing costs including no more than two discount points. Since there is no underwriting approval, no appraisal, and no credit package required, the process is much simpler and faster than a traditional refinance.

For more information on obtaining a cash-out or Interest Rate Reduction Refinance Loan, please give us a call at (832) 286-1600.