What is the VA Interest Rate Reduction Refinance?

This is a home refinance option available to veterans who current have a VA loan on their home. This is a remarkably easy and quick way to refinance your VA home loan in Colorado.

You might remember that purchasing your home on a VA loan required quite a bit of documentation. The VA makes the refinance program much easier because the VA already is backing your current home loan. Here are some highlights as of 10-31-2014:

What you don’t need:

  • No Appraisal required
  • Condominiums Allowed – No special condo approval required
  • VA High Balance  or VA Jumbo loans allowed
  • Manufactured Homes (double-wide) allowed / Minimum credit score 640

What you do need:

  • You must be VA loan eligible
  • Minimum 580 Credit Score
  • You must be current on your VA loan
  • You must be able to document some form of income

There are other guidelines that apply, but these are the most important qualifying items for a VA Interest Rate Reduction Refinance with Colorado Mortgage Group. We have a VA loan division that specialized in this program. Other highlights include:

  • Lower your interest rate and lower your monthly payment
  • Convert from ARM to Fixed rate
  • You can usually close in under 30 days
  • You may have the option to miss two months of mortgage payments
  • You will usually keep your escrow refund from your current lender
  • No cash due at closing

If you are unfamiliar with this program you might think this sounds too good to be true. But in our opinion there is no better loan program than a VA loan and there is no better refinance option than the VA IRRRL. The Department of Veterans Affairs got this one right. They have made the refinancing of VA loans as easy as possible.