VA Streamline Refinance / IRRRL: No Credit Score, No Job, No Appraisal

Dan Green
The Mortgage Reports contributor

Use The VA IRRRL Mortgage Loan

Refinance your VA loan the easy way — via the program’s streamlined refinance option.

Officially named the Interest Rate Reduction Refinance Loan (IRRRL) — but often called the “VA Streamline Refinance” — the IRRRL waives the typical verifications required with a refinance, including checks of credit score, income and debts, and history of employment.

The Department of Veterans Affairs relies on mortgage payment history to determine a homeowner’s eligibility instead.

So, if you’ve paid your mortgage on-time for the last 12 months, and you’ll reduce your monthly payment via a refinance, it’s likely you’ll qualify for the VA IRRRL.

And, because VA mortgage rates can be up to 50 basis points (0.50%) below comparable conventional mortgage rates, reducing your monthly payment may be easier and closer than you think.

Have you seen today’s VA mortgage rates?

Verify your new rate (Oct 15th, 2021)

What Is A VA Loan?

Created in 1944 as part of the G.I. Bill, the VA Loan Guaranty Program helps military borrowers to establish roots in a community via homeownership.

The Department of Veterans Affairs defines military borrowers, in general, as borrowers who have served 181 days during peacetime, 90 days during wartime, or have spent 6 years in the Reserves or National Guard.

Beyond such veterans and active duty service personnel, the Department of Veterans Affairs also makes its home loan program available to surviving spouses of service members killed in the line of duty, and honorably discharged service members.

More than 21 million VA loans have been made since the program’s inception.

One reason why military borrowers flock to VA loans is that VA loans allow for 100% financing.

By comparison, most other common loan programs, including the Conventional 97 and the HomeReady™ program require a 3 percent downpayment, at minimum; FHA loans require 3.5% down.

Even better is that VA loans never require mortgage insurance.

No matter how much or how little you put down on a home, as a military borrower using VA mortgages, you’ll pay no mortgage insurance whatsoever.

Another VA benefit is that the VA loans are assumable.

When your is assumable, it means that you can sell your home with your mortgage attached; an eligible buyer can “assume” your mortgage at its current rate.

Assumable mortgages are especially marketable in an environment where mortgage rates are rising.

Considering today’s cheap mortgage rates, your home’s assumable VA mortgage, then, can help improve its marketability in five or ten years or whenever it is that you’re ready to sell.

Here are some veterans discussing their personal experiences with VA loans.

But, for all the reasons to use a VA loan on your next home purchase, it can be the benefits provided by the VA loan program after closing that are most valuable.

With your VA loan comes access to the VA Streamline Refinance.

Verify your new rate (Oct 15th, 2021)

Qualifying For The VA IRRRL Loan

The VA Interest Rate Reduction Refinance Loan (IRRRL) is a special benefit to homeowners with existing VA financing.

Pronounced “earl“, the IRRRL program lets VA-backed homeowners refinance to lower mortgage rates with very little hassle — often within 30 days from application.

The IRRRL’s eligibility criteria is as follows:

  • Your current mortgage must be a VA loan
  • You must be on-time with your mortgage for the last 12 months
  • You may not receive “cash out” as part of the refinance
  • You must live, or have lived, in the home being refinanced
  • Your mortgage payment must reduce via the IRRRL

These rules are steadfast. However, the Department of Veterans Affairs will grant an exception on the last point.

If your IRRRL includes the refinance of an ARM into a fixed-rate loan, your mortgage payment is not required to reduce.

Beyond this, there are few steps in the VA Streamline Refinance mortgage approval process.

According to the official VA loan guaranty guidelines, with a VA Streamline Refinance, lenders are not required to perform credit score verifications, income documentation verification, or employment checks.

In addition, with a VA loan refinance, home appraisals are not required.

Regardless of your home’s value, you can use the IRRRL program. Apply for a VA refinance with any VA-approved mortgage lender.

What Are Today’s Mortgage Rates?

The VA IRRRL is among the simplest, fastest ways to refinance a U.S. home loan. With mortgage rates down, then, consider your eligibility to refinance.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

Verify your new rate (Oct 15th, 2021)