If you are a veteran who has already obtained VA home loan, there are some options to consider if you would like to refinance your home. The Veterans Administration offers a refinancing loan program that is called the Interest Rate Reduction Refinance Loan (IRRRL). It is also known as a Streamline Refinance. With an IRRRL, you as a VA homeowner have the means to lower your interest rates. The only requirement that the veteran will be expected to meet is to provide the funding fee for one-half of one percent of the loan amount. It can either be paid with cash or incorporated into the new loan. Veterans who may be considering this plan should note that it is available only to those who are refinancing a prior VA mortgage.
You should also be aware of the fact that unlike other refinanced loans, you will not be able to receive cash back benefits. Also, to be eligible for an IRRRL, you need to meet the VA’s occupancy requirement, which is specific to that type of loan. Where you needed certification of current occupancy before, the IRRRL just asks if you previously occupied the residence and certify that this was the case.
