VA Interest Rate Reduction Refinance Loan (VA IRRRL) – also called the Streamline Refinance Loan – can help you obtain a lower interest rate by refinancing your existing VA loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

No appraisal or credit underwriting package is required when applying for a VA IRRRL. A VA IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs. When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase. You may NOT receive any cash from the loan proceeds.

Refinance your VA mortgage at a lower interest rate and lower your monthly payments.VA IRRRL Refinance


A VA IRRRL can only be used to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan. No loan other than the existing VA loan may be paid from the proceeds of a VA IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.

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The occupancy requirement for a VA IRRRL is different from other VA loans. For a VA IRRRL you need only certify that you previously occupied the home. A Certificate of Eligibility (COE) is not required. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

Programs available to qualified borrowers only. Some Restrictions may apply. Programs subject to change without notice. Contact eLucid for more information.

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