{"id":16638,"date":"2020-08-21T12:18:41","date_gmt":"2020-08-21T19:18:41","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=16638"},"modified":"2020-08-22T09:17:59","modified_gmt":"2020-08-22T16:17:59","slug":"va-interest-rate-reduction-loans-irrl-and-forebearances","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16638\/va-interest-rate-reduction-loans-irrl-and-forebearances\/","title":{"rendered":"VA Interest Rate Reduction Loans (IRRL) and Forbearances"},"content":{"rendered":"<p>A VA Interest Rate Reduction Loan (IRRL) is a streamlined refinance mortgage which allows veterans to lower their interest rate and payment without an appraisal, income qualification, or assets documentation.\u00a0 It is a simple process which, over the years, has been subject to lender overlays but still offers veterans a chance to save money on their mortgage.<\/p>\n<p>Basic rules are:<\/p>\n<p>1- the VA loan must be seasoned with a <a href=\"https:\/\/www.benefits.va.gov\/HOMELOANS\/documents\/circulars\/26_19_22.pdf\">minimum of 6 monthly payments AND\u00a0 at least 210 days from the first payment date<\/a>.\u00a0 This means that, if a veteran closed his\/her loan in November 2019, with a first mortgage payment date of January 1, 2020, the veteran wouldn&#8217;t be able to close on the VA IRRL until July 29, 2020.\u00a0 While the June payment would have been the 6th consecutive payment, the 210-day period extends through July 29.<\/p>\n<p>2- When a veteran <a href=\"https:\/\/www.secureloandocs.com\/app\/83349978\/loId\/28576\">makes a VA IRRL application<\/a> (<a href=\"https:\/\/www.vlender.com\/1003app.pdf\">sample<\/a>), he\/she would skip the income, assets, and liabilities section.\u00a0 While it is not a VA requirement, most lenders want to know that one or both borrowers are employed so we encourage veterans to include their current employment information on the application.<\/p>\n<p>3- the loan processor will ask the veteran and co-borrower to provide a copy of the old note, a copy of <a href=\"https:\/\/www.sapling.com\/8275191\/mortgage-patriot-act\">identity documents<\/a> to comply with the USA-PATRIOT Act , a copy of the current mortgage statement<\/p>\n<p>4- right after the application is made, a mortgage loan originator may present 2-3 options for the VA IRRL (<a href=\"https:\/\/refi.osiexpress.com\/66017#mortgage\">sample<\/a>), showing the inverse relationship between rates and fees.\u00a0 Quick rules of thumb\u00a0 for a VA IRRL\u00a0 are:<\/p>\n<ul>\n<li>the rate must drop at least .5%.\u00a0 If a veteran has a current mortgage rate of 3.25%, the rate offered must be 2.75% or lower<\/li>\n<li>closing costs, including the VA funding fee of .5%, must be recovered through the monthly savings within 36 months (disabled veterans are not charged a VA funding fee.\u00a0 Thus, their savings are greater than veterans who do not have a VA-rated disability)<\/li>\n<\/ul>\n<p>5- Once the veteran selects the rate and closing costs scheme, the loan terms are locked and loan disclosures are sent (this must happen within 3 <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16638\/va-interest-rate-reduction-loans-irrl-and-forebearances\/#more-16638\" class=\"more-link\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A VA Interest Rate Reduction Loan (IRRL) is a streamlined refinance mortgage which allows veterans to lower their interest rate and payment without an appraisal, income qualification, or assets documentation.\u00a0 It is a simple process which, over the years, has been subject to lender overlays but still offers veterans a chance to save money on [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[],"class_list":{"0":"post-16638","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":15383,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15383\/lower-va-funding-fees-as-of-november-18-2011-attract-year-end-veteran-buyers\/","url_meta":{"origin":16638,"position":0},"title":"Lower VA funding fees, as of November 18, 2011, attract year-end veteran buyers","author":"Brian Brady","date":"November 22, 2011","format":false,"excerpt":"N.B:\u00a0 On the day before I published this, HR 674 passed, reverting the funding fee amounts to the \"old\" levels.\u00a0 It was updated in VA Circular 26-11-19, published November 22, 2011.\u00a0 The \"new\" lower funding fee schedule was in effect for three days, from Nov 18-21.\u00a0 Sorry for the confusion.\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7903,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7903\/fha-and-va-assumable-loans-offer-an-exit-strategy-for-todays-buyers\/","url_meta":{"origin":16638,"position":1},"title":"FHA and VA Assumable Loans Offer an Exit Strategy For Today&#8217;s Buyers","author":"Brian Brady","date":"April 16, 2009","format":false,"excerpt":"How can an FHA mortgage or VA home loan sell a home faster?\u00a0\u00a0 When mortgage rates are 10% and the 5% government loan is assumable. I've taken a few pokes at the contributors on Active Rain; John MacArthur isn't one of them.\u00a0 John is a Branch Manager with Long and\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9325,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9325\/va-jumbo-mortgages-determining-the-down-payment\/","url_meta":{"origin":16638,"position":2},"title":"VA Jumbo Mortgages:  Determining The Down Payment","author":"Brian Brady","date":"July 28, 2009","format":false,"excerpt":"Sean Purcell and I are really figuring VA-guaranteed\u00a0 jumbo loans.\u00a0 We're getting a steady stream of business from high-cost California counties.\u00a0 One of the common misconceptions is that VA loans are capped at the county loan limit, like FHA and conventional mortgages.\u00a0 I'm going to walk you through the formula\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9259,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9259\/consider-a-seller-paid-rate-buy-down-rather-than-price-reduction\/","url_meta":{"origin":16638,"position":3},"title":"Consider a Seller-Paid Rate Buy-Down Rather Than Price Reduction","author":"Brian Brady","date":"July 20, 2009","format":false,"excerpt":"Listing agents, considering offers might advise their sellers to counter-offer with a mortgage rate buy-down strategy rather than to reduce the sales price. We like to help our agents with charts from our Mortgage Lens program.\u00a0 The chart helps to illustrate the power of leverage, to both the seller and\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"rate-buydown","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2009\/07\/rate-buydown.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":17943,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17943\/can-you-waive-an-appraisal-when-purchasing-with-a-va-mortgage\/","url_meta":{"origin":16638,"position":4},"title":"Can a veteran buyer waive an appraisal when purchasing with a VA mortgage?","author":"Brian Brady","date":"March 8, 2021","format":false,"excerpt":"Welcome to 2021 where offers are made above listing price and, to win the deal, the buyer waives the appraisal.\u00a0 When I was hired as a listing broker, I was able to get two of the offers to waive the appraisal by asking their respective lenders to run the desktop\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16310,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16310\/if-the-condominum-is-not-va-approved-how-do-i-get-a-va-home-loan-offer-accepted\/","url_meta":{"origin":16638,"position":5},"title":"If the condominum is not VA-approved, how do I get a VA home loan offer accepted?","author":"Brian Brady","date":"April 4, 2013","format":false,"excerpt":"Many veterans in California purchase properties which are classified as condominiums.\u00a0 Some are large complexes, with professional HOA management, some are small complexes (under 6 units) with no monthly HOA fee and an informal cost-sharing agreement, and some are townhomes.\u00a0 All share on thing in common--they are listed on the\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=16638"}],"version-history":[{"count":4,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16638\/revisions"}],"predecessor-version":[{"id":16660,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16638\/revisions\/16660"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=16638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=16638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=16638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}