• 100% financing for qualified borrowers with credit score down to 580
• 90% financing for qualified borrowers with credit score down to 560
• Cash out refinances available to borrowers with credit score down to 580
• Seller can contribute up to 6% of purchase price towards buyers closing costs
VA Interest Rate Reduction Refinance (VA IRRRL) Programs
Available to borrowers with Credit Scores down to 580!
The U.S. Department of Veterans Affairs’ Interest Rate Reduction Refinance Loan (IRRRL) helps homeowners refinance their existing VA loans to a lower interest rate loan or to a fixed-rate loan (from an adjustable-rate loan). The goal of the program is to help lower homeowners’ monthly payments or make payments more predictable by fixing the interest rate.
• An appraisal is not usually required. However, a statistical value or drive-by appraisal might be required in certain instances.
• Credit report review and credit underwriting are NOT required.
• Income and asset documentation are NOT required.
• Credit score is NOT required.
• Refinances may be done with no out-of-pocket expenses to the borrower. Veterans can finance closing costs into the new loan or opt for an interest rate that is high enough to include all costs.
• An acceptable 12-month payment history is required. (Delinquencies must be adequately explained.)
• A Certificate of Eligibility is NOT required.
• Owner occupancy is NOT required.
• Prior discharged bankruptcy, foreclosure of non VA-guaranteed loans and open collection or charge-off accounts will not impact eligibility. (However judgments and tax liens must be satisfied.)
• Only the existing loan balance, closing costs and energy improvements up to $6,000 can be included in the new loan amount.
• "Cash-out" is not allowed but it is permissible for the Veteran to defer up to two mortgage payments and receive a refund of their impound account.