Essential Documents for a VA IRRRL

When you opt for a Veterans Affairs interest rate reduction refinance loan (VA IRRRL), also known as a VA streamline refinance, you’re replacing your current VA loan with a new one. This new loan term would start over with one of the multiple options available for term length, depending on the mortgage term you choose. The new loan would ideally help you save money, pay off the loan sooner or stabilize your monthly payments. In addition, your VA loan closing costs may be able to be rolled into the loan.

One of the many reasons why this refinance product is a popular one is because there is generally less paperwork required for one than a typical refinance loan. Income, credit and employment verification usually isn’t required. There’s generally no home appraisal required either, which may significantly impact underwriting time.

So what documents are needed for a VA IRRRL? Learn more about this process to properly prepare for your own refinance.

Document List 

While there is less paperwork to a VA IRRL than other types of loans, there is still documentation your lender will need to prepare. However, this can vary between lenders so make sure you speak with yours to understand what they need from you specifically.  

• Lender’s Cover or Transmittal Letter (if used) 
• VA Loan Summary Sheet 
• Certificate of Eligibility (COE) 
• Funding Fee Receipt 
• A Signed Statement Acknowledging the Effect of the Refinance Loan on Payments and Interest Rate 
• Interest Rate Reduction Refinancing Loan Worksheet 
• Report and Certification of Loan Disbursement 
• Verification of VA Benefits (if applicable) 
• Closing Disclosure 
• Federal Collection Policy Notice 
• Lender’s Certification that Prior Loan was Current at the Time of Loan Closing 
• Statement That Provides Specific Reasons for Late Reporting (if applicable) 
• Documentation for Energy Efficient Improvements (if applicable) 
• Uniform Residential Loan Application (URLA)

Preparing Your Documents 

Since you’ve already been through the mortgage process, you may already understand that it may get complex and confusing. By understanding the documents you need and preparing them beforehand, you may be able to minimize any roadblocks that pop up during the process.

Speak With Your Lender 

Remember that you’re not alone throughout this process. Your lender is there to answer your questions, guide you throughout each step and help you remedy situations that may go wrong. To know what documents they need from you specifically, you may want to consider asking your lender for a list in writing so you can create a checklist as you gather the necessary paperwork.  

Take Inventory of What You Have 

Some documents you may already have and be able to reuse. For example, the COE you had for your first VA loan may be used for your VA IRRRL. In some cases, you may have to request one. 

Stay Organized 

Whether you’re keeping your information digitally or in a physical folder, it’s important to stay organized throughout the process. You never know when you or your lender may need something specific.

Eligibility 

Eligibility requirements can vary by lender so to ensure you’re able to apply for a VA IRRRL, you should speak with yours. Although there are varying requirements, the VA has established the following: 

• You must already have a VA-backed loan. 
• You must use the new loan to refinance this existing loan. 
• You must be able to certify that you live in or used to live in the home covered by the loan. 
• If you already have a second mortgage on the home, you must make the new loan the first mortgage.

VA IRRRL Timeline 

The timeline for a VA IRRRL is different depending on your lender and your specific loan. This is why it’s imperative you prepare your documentation as soon as possible so that you may be able to close quickly.  

Because there’s usually less paperwork for a VA IRRRL, the timeline is generally shorter than other refinances. However, it helps to check in with your lender throughout the whole process to ensure that you’re on schedule and can find solutions for any pitfalls.

Know Your Resources 

As an eligible veteran, you may find many reasons to get a VA IRRRL as opposed to other refinance loans. This option has advantages that not many other loans do aside from less paperwork: Generally lower interest rates, no private mortgage insurance (PMI) and more. But for any mortgage, it’s important you do your homework, ask questions and work with the professionals who are there to help you throughout the process.  

In addition, don’t forget you have a valuable resource in the U.S. Department of Veterans Affairs. As a government resource for veterans and other military service members, they are dedicated to helping you take advantage of the benefits available to you. For more information on VA home loans, visit their website.