The Florida VA Mortgage Interest Rate Reduction Refinance Loan (IRRRL) lowers your VA mortgage interest rate by refinancing your existing VA Florida mortgage loan. By obtaining a lower VA mortgage interest rate, your Florida mortgage monthly mortgage payment should decrease. You can also Florida VA mortgage refinance an adjustable rate mortgage (ARM) into a fixed rate VA Florida mortgage.
Closing costs comparable to other financing types.
- No monthly private Florida mortgage insurance required.
- Right to prepay loan without penalties.
- VA bad credit home loans.
- VA Mortgage can be taken over (or “assumed”) by the buyer when a Florida home is sold.
- Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan..
- Florida Interest Rate Reduction Refinance Loans may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
- No appraisal or credit underwriting package is required when applying for an Florida Interest Rate Reduction Refinance Loans.
- When VA refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
- No Florida mortgage lender is required to give you an Florida Interest Rate Reduction Refinance Loans, however, any Florida VA mortage lender of your choosing may process your application for an IRRRL.
- Veterans are strongly urged to contact several lenders because terms may vary.
- You may NOT receive any cash from the Florida Interest Rate Reduction Refinance Loans proceeds.
- FLORIDA VA INTEREST RATE REDUCTION REFINANCE LOAN ELIGABILITY
- A Florida VA Mortgage Interest Rate Reduction Refinance Loan can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance mortgage, and it will reuse the entitlement you originally used.
The VA does not set a cap on how much you can borrow to finance your Florida VA mortgage. However, there are Florida VA mortgage limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The Florida VA loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. The Florida VA mortgage loan limits vary by Florida county.
The basic Florida VA entitlement available to each eligible Florida Veteran is $36,000. Most Florida VA mortgage lenders will generally loan up to four times a Veteran’s available entitlement without a down payment provided the Florida Veteran is income and credit qualified and the Florida home appraises for the asking price. Florida VA mortgage loan limits for more information about the limits in your Florida county.
- A Certificate of Eligibility (COE) is not required. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.
- You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan.
- The occupancy requirement for an IRRRL is different from other VA loans. For a Florida Interest Rate Reduction Refinance Loans you need only certify that you previously occupied the Florida home.
- No Florida VA mortgage loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.
- FLORIDA VA INTEREST RATE REDUCTION REFINANCE LOAN APPLICATION PROCESS
A new (CEO) Certificate of Eligibility is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or your Florida VA mortgage lender may use our e-mail confirmation procedure in lieu of a certificate of eligibility.
Generally, all Florida Veterans using the VA Mortgage Guaranty benefit must pay a funding fee. This reduces the loan’s cost to taxpayers considering that a VA mortgage requires no down payment and has no Florida monthly mortgage insurance. The VA funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent VA mortgage user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a:
- Veteran receiving Florida VA compensation for a service-connected disability, OR
- Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
- Surviving spouse of a Veteran who died in service or from a service-connected disability.
Beware: It could be a bigger increase than you can afford.
The Florida VA funding fee for second time users who do not make a down payment is slightly higher. Also, Florida National Guard and Florida Reserve Veterans pay a slightly higher funding fee percentage. See Florida VA Fees for more information about loan costs. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you money in interest over the life of the loan, you may see a very large increase in your Florida VA monthly mortgage payment if the reduction in the interest rate is not at least one percent (two percent is better).