Are you looking to refinance an existing VA mortgage into another VA home loan? If so, you may have a number of questions about how VA to VA mortgages work. Known formerly as “Interest Rate Reduction Refinance Loans,” they are called IRRRLs for short. Let’s go over answers to some frequently asked questions about IRRRLs.
FAQS on VA IRRRL
Q: Can I use a VA IRRRL to refinance my second mortgage?
A: The VA IRRL is designed specifically to refinance an existing VA mortgage on your current or previous residence. If there is a second mortgage, you will need to work with the holder so that the new VA mortgage you get through the refinance becomes your first mortgage.
Q: How much will I have to pay upfront?
A: One of the main benefits of a VA IRRRL is that you do not have to pay any costs out of pocket if you do not want to.
There is a funding fee for the refinance, but if you want, you can roll it into your new VA loan. That way, you do not need to pay it right away. For some eligible applicants, it is also possible for this funding fee to be waived entirely.
Q: Do I need to get a new Certificate of Eligibility?
A: You probably remember that when you first took out your existing VA mortgage, you needed to obtain a Certificate of Eligibility (COE).
If you still have that same COE, you can use it again now during the streamline refinance process.
If you no longer have that original COE, that is not a problem. Your lender can access it electronically on your behalf.
Q: Is it true that only certain lenders can do these types of refinances?
A: No. Sometimes lenders make this claim, but it is false. While not all lenders handle VA IRRRLs, hypothetically any lender could.
Q: What if I have a conventional or FHA loan, but I am a veteran?
A: If you have a conventional or FHA mortgage and want to refinance to a VA loan, you can do so if you are a qualifying veteran, active-duty service member, or surviving spouse.
But the VA IRRRL is a streamline product that is specifically for a VA to VA refinance, and thus you would not be able to use it for that purpose.
Get Answers to All of Your Questions About VA IRRRLs in Washington State
Blue Square Mortgage has helped many VA homebuyers and homeowners in Seattle and throughout WA to purchase or refinance with competitive mortgages. If you have questions about VA mortgages or VA IRRRLs, we can answer them. Please give us a call today at (206) 352-6453 to schedule your consultation.