What are VA and IRRRL Loans for Veterans

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Are you a military veteran? If so, we want to start off by saying thank you for your service. Thank you for also checking out this article, where we’ll go over the basics of VA and IRRRL loans. 

What is a VA Loan for Military Veterans?

A VA Loan is a type of mortgage you can take out to purchase a home. While it has some similarities to other mortgages, it is also unique in a few ways. 

For one thing, it’s nice because there is no down payment required. If you have money saved up for a down payment that’s great, but it’s not necessary. 

Second, you’ll never have to pay mortgage insurance. Some loans, such as FHA loans, will always require mortgage insurance. Others, such as conventional mortgages, require it if you can’t put down at least 20% of the home’s purchase price. 

Third, there is a Funding Fee for taking out a VA loan where the Veteran is not exempt from paying the Funding Fee. This is dependent on if you’re a first-time buyer or subsequent user, the transaction type (purchase, cash-out, etc.), and the down payment you choose.

Finally, this type of loan is only available to military and veterans. 

Even with the VA Funding Fee, it’s a great deal because the money saved by not having mortgage insurance outweighs the funding fee. 

To qualify for the loan, lenders tend to look for the same type of credit score, debt-to-income ratio, credit utilization, etc. as a conventional mortgage. 

What is an IRRRL Loan?

Similar to the VA Loan, an IRRRL is a type of loan created to help veterans get a good deal on their mortgage. IRRRL stands for Interest Rate Reduction Refinance Loan, and a rate reduction is exactly what tends to happen most of the time. 

By decreasing your interest rate, you can save a lot of money in the long run. In the short term, your savings may just be something like $150 per month. But when you add that up over the course of 30 years, that comes out to $150 x 360 = $54,000 saved! You can do a lot with that kind of money. 

Another reason to consider an IRRRL is if you currently have an adjustable-rate mortgage. An ARM can be nice in some ways, but the downside is you’re exposed to rising interest rates and payments. By switching to an IRRRL with a fixed rate, you never have to worry about your mortgage going up. And since there’s a good chance your property taxes will go up over time, it will be nice to at least have a mortgage rate that’s fixed, right?

How Do You Get a VA Loan or IRRRL?

Each loan is a little different, so the best thing is for us to walk you through each respective path. If you want to buy a home with a VA Loan, we’ll help you understand the documents you need to get pre-qualified and ultimately, qualified. Likewise for the IRRRL, we’ll give you an idea of what is necessary to lock in your interest rate. 

Give us a call at (844) 765-6844 and let’s get started! 


Our products and services have no affiliation with or endorsement from any government agency or body.

*On a VA 30-Year fixed-rate purchase with a loan amount of $145,000.00 (at 100% LTV with zero down payment from the borrower), at an interest rate of 3.74% with $1,625.45 discount points (Annual Percentage Rate – 3.9153%), you will be required to make 360 equal monthly payment of $670.70 (which includes principal and interest only, so your actual payment, including taxes, insurance, and other property charges, will be higher).