IRRRL - A Real Benefit to the Veterans and Active Service Members

With the IRRRL option, you don’t need to arrange any of the above mentioned documents instead of verifying that the current VA mortgage is current.

The Interest Rate Reduction Refinance Loan (IRRRL), also referred to as the VA streamline refinance is an excellent gift for Florida Veterans who currently have a VA mortgage. This kind of loan helps the borrowers to follow the simple loan applying procedure, so it is called a Streamline refinance. Most importantly, the eligibility criteria of the first time home buyer of a veteran or active service member includes arranging the appraisal to verify the value of the upcoming residential property, showing the credit history and providing the asset and income documents. While, on the contrary, with the IRRRL option, you don’t need to arrange any of the above mentioned documents instead of verifying that the current VA mortgage is current.

Although, in most of the cases, there is no requirement of arranging an appraisal, income/asset documents or a credit check, you might have to submit any of the items in rare cases. Contacting with the existing VA mortgage can actually keep you away from collecting these items to get the refinancing task done. This is very simple why you as a borrower don’t need to put all documents together because you have already provided a loan guarantee to your lender while taking the loan at the higher interest rates. In such a case, if the borrower is found to be a defaulter on the mortgage loan, then VA will be liable to compensate a portion of the loss the lender incurs.

Furthermore, you as the borrower need to pay the closing costs and pre-paid while completing the final formality of the process. Under this process, the borrower doesn’t have to bear the out-of-pocket expenses since it allows him to turn these costs into the new mortgage. Here are a few examples of some of the costs on the IRRRL loan.

• There may be a requirement for the State/county taxes
• The VA funding fee is 0.50% of the new loan
• Upgration of the title insurance is must

  The real estate taxes and insurance require setting up the escrows

• Per diem interest from the closing date to the end of the month

In short, the costs of mortgage refinancing loan are comparatively lesser to a traditional mortgage. So, you don’t have to actually worry about collecting the appraisal and paying the fee for it.

The Irrrl is undoubtedly nothing than a boon for the veterans and active service members since it may not be subject to an appraisal. This means that the borrower still has the option to cut down the VA mortgage interest rate even if the value of the home is worth less than is being borrowed.

At VALoansFinance.com, we understand the honor and sacrifice that are the hallmark of US Veterans throughout our nation’s history. We are passionate about helping Veterans buy their first home as affordable as possible, and empowering current Veteran