Refinance your VA home loan

Many American families are still struggling to afford home loans made at the peak of the housing bubble. The good news, for veterans with VA home loans, is that relief is available through the VA.

The VA Interest Rate Reduction Refinance Loan (IRRRL) allows homeowners with mortgages through the VA to refinance their mortgage to a lower fixed interest rate with no out-of-pocket expense. The IRRRL doesn’t require a new appraisal, so even if your home is “underwater,” – meaning that you owe more on your mortgage than your house is presently worth – your loan could still eligible for a refinance.

Additionally, the IRRRL does not require a minimum credit score. So even if your credit has taken a hit due to the recession, you can still qualify for a new loan. In fact, there is no minimum credit score for the program at all.

Not only can the IRRRL be used to reduce your interest rate, but you can also use it to refinance out of an adjustable rate mortgage (ARM) into a secure fixed rate. Or you could use the loan to change the term of your mortgage from 30 to 15 years. Either of these options could result in an increase to your mortgage payment, but may be a wise decision, depending on your individual financial needs and goals.

An IRRRL can also be utilized for a property which you no longer occupy. You simply must certify that you previously occupied the home. So if you moved to a new location but still own a home with a VA mortgage on it, or if you’re using a home you once lived in as an investment property, you may still be able to refinance the property with an IRRRL.

The VA Interest Rate Reduction Refinance Loan is an excellent benefit that could substantially improve the financial situation of many veterans. So if you’re looking to make your monthly mortgage payment more manageable, or are seeking to restructure your loan to better achieve long term goals, talk to a lender about your options through the IRRRL.

More details on the program can be found on the VA website at: http://www.benefits.va.gov/homeloans/irrrl.asp. Or simply contact a lender experienced in VA programs.

Nate Shultz is the director of Business Development for Montage Mortgage, LLC. He is an expert in the areas of VA lending programs, Federal Housing Administration programs and conventional mortgage programs.