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The benefits of doing a VA IRRRL (Interest Rate Reduction Refinancing Loan) instead of a typical rate and term refinance include the ability to refinance an existing VA loan generally at a lower interest rate, with lower principal and interest payments than the existing VA loan. Additionally, no appraisal or underwriting is required, closing costs may be financed in the loan, and any reasonable discount points can be charged, although only two discount points can be financed in the loan. 

 The eligibility requirements for a VA Interest Rate Reduction Refinancing Loan (IRRRL) include:

1. The borrower must currently have a VA Loan and must own the subject property.
2. At closing, 210 days must have passed since the first payment was due, and at least 6 timely payments must have been made.
3. Closing costs recoupment must be within 36 months and this is calculated using the most recent Loan Estimate.
4.   The total closing costs are defined as the sum of Origination Charges, Services Borrower Did Not Shop for, Services Borrower Did Shop For, Taxes and Other Government Fees, Prepaid items, Initial Escrow Payment at Closing and Other, less any Lender Credit. 
5.  Closing costs may be financed in the loan - no out-of-pocket money at closing. 
6. The IRRRL must replace the existing VA loan as the first lien on the same property, and any second lien-holder would have to agree to subordinate to the first lien holder.
7. The borrower cannot pay off liens other than the existing VA loan from IRRRL proceeds.
8. The veteran (or surviving co-obligor spouse) must still own the property.
9. Generally, the party(ies) obligated on the original loan must be the same on the new loan.
10. The lender should contact VA regarding a proposed IRRRL involving a change in obligors unless the acceptability of the IRRRL is clear.

Please note that these are general guidelines, and specific cases may require additional criteria or documentation.  The documentation required for a VA IRRRL (Interest Rate Reduction Refinance Loan) includes:

1. VA Form 26-8937, Verification of VA Benefits (if applicable)
2. Credit Report or Mortgage Only Credit Report dated within 90 days (Mortgage Only Credit Report must include key factors).

For loans that are 30 days or more past due, prior approval is needed, and the lender must determine that the cause of the delinquency has been resolved and that the Veteran is able to make the proposed loan payments. 

Obtain your VA IRRRL Rate Quote here.