Don’t Qualify for HARP 2.0? You Still Have Options!

The VA IRRRL - known as the VA streamline or VA to VA Loan - can help military homeowners reduce their mortgage rates.

Did you read the latest SargesList post, New Lifeline for Underwater Military Homeowners: HARP 2.0, thinking you‚Äôd found a solution to your mortgage woes? Did you go to Zillow’s qualification calculator only to find out that your mortgage never saw the likes of Freddie ¬†or Fannie? What now?

If HARP 2.0 isn‚Äôt for you, you‚Äôre not the only one…and you still have options.

As many watched home mortgage interest rates tumble over the past 5 years, people kept struggling to find a viable option to refinance their homes. Most refinancing options required homeowners to bring $30,000 or more to the table. Another saving grace to getting your home above water!? The VA Interest Rate Reduction Refinance Loan (IRRRL).

What is a VA IRRRL?

The VA IRRRL is often referred to as a “VA to VA” Loan or “VA Streamline”.

The program is available to EXISTING VA Loan holders that want to refinance their VA adjustable rate mortgage (ARM) loan to a VA fixed rate AND existing VA Loan holders that want to refinance their VA fixed rate mortgage home to take advantage of lower interest rates (click the link to see NFCU rates).

Any lender can make an IRRRL. You don’t even have to stay with your existing lender to take advantage of the program. As a matter of fact, the VA urges interested borrowers to shop around and compare offers by several lenders before making your decision.

Although the new loan cannot be more than the sum of the outstanding balance on your current VA loan, you are allowed to roll in the VA funding fee and closing costs into the new loan total. You can even buy down your interest rate by up to 2 discount points and add in up to $6,000 worth of energy saving improvements to your home.

IRRRL Facts:

  • The VA fee is one half of one percent of the loan amount, which can be included in the new loan.
  • No appraisal or credit underwriting is required, but lenders might require them regardless.
  • You aren’t required to obtain a new certificate of eligibility
  • You have the option to include the VA fee and other closing costs into the new loan resulting in a ‚Äúno out of pocket‚Äù refinance
  • You DO NOT have to currently occupy your home to qualify (GREAT NEWS for landlords)
  • You can refinance a 30-year mortgage to a 15-year mortgage.

Navy Federal Credit Union Mortgage Refinance Tool

¬†Have¬† you had a success using the VA IRRRL program?¬† Do you think the VA IRRRL program could be the right fit for you?¬† Or do you know of other programs or information that can help the SargesList Community?¬† We’d love to hear from you!¬† Feel free to leave your comments in the section below.

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