What is a VA IRRRL?

IRRRL is an acronym for Interest Rate Reduction Refinance Loan. It is a unique refinance loan available only to borrowers who have a current VA loan on their primary residence. VA IRRRLs are considered a “streamlined” loan, meaning fewer documents are required for underwriting. As a result, VA IRRRLs also typically take less time to complete than other refinance loans.

How long does it take?

VA IRRRLs typically take between 20 and 30 days to complete. However, each scenario is different. No one can tell you exactly how long your refinance will take. However, a great feature of most VA IRRRLs is that they do not require an appraisal or income verification which drastically speeds up the process.

How much does it cost?

The cost to refinance a mortgage can range from 2% to 6% of your loan amount, depending on several factors. HomeFi does not charge junk fees that other mortgage companies charge, saving our customers hundreds and sometimes thousands of dollars in refinance closing costs.

Is there a funding fee?

Yes, there typically is a funding fee charged by the VA for all loans guaranteed by the VA. This fee can be rolled into the loan. Depending on circumstances, many VA borrowers can be exempt from this fee. Request more info to see if you qualify for an exemption.

Can I pull cash out when I refinance?

Yes, through a standard VA cash-out refinance loan. A VA cash-out refinance requires full credit information and income documentation to qualify.

How much cash will I need to bring to closing?

In most cases, borrowers do not need to bring any cash to close. There are some types of programs and some scenarios where borrowers may choose to bring cash to closing, but typically, most or all of the costs required to refinance a mortgage are added into the loan.

What documents are required?

The documents required for a refinance varies depending on the loan type. Most refinance loans will require credit, income, insurance, real estate taxes, HOA and other types of documentation. HomeFi’s digital customer portal makes turning your documents in quick and easy, saving time and expediting the refinance process.

How much cash can I take out?

If you choose to take cash out of the equity in your home, the amount of cash you can pull out depends on several factors. Here are a few important factors: 1) how much your home is worth as determined by a third party certified appraiser; 2) the balance of your current mortgage; 3) the total amount of closing costs required to complete the refinance; 4) the loan programs available to you; 5) your debt-to-income ratio. HomeFi’s expert mortgage consultants can help you pick the program that is just right for you.

What can I do with the cash I take out?

Homeowners use cash-out refinance loans for many reasons. However, some reasons are “better” and make more financial sense than others. Here are a few ways customers use a cash-out refinance: 1) Home improvement projects; 2) Pay off high interest credit card debt; 3) Buy an investment property or second home; 4) Protect a business against cash-flow emergencies.