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Understanding the Delaware VA IRRRL Refinance Mortgage Loan

John Thomas September 17, 2018 Tags:
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Understanding the Delaware VA IRRRL Refinance Mortgage Loan

Delaware homeowners with existing VA mortgages have an option for refinancing called the Delaware VA IRRRL Refinance Mortgage Loan. Commonly known as the VA Streamline Refinance, the program simplifies home refinancing for Delaware Veterans by waiving documentation typically required by lenders, including income information, employment verification, bank account and credit score verification, and even an actual appraisal of the home.  Call the John Thomas Team at 302-703-0727 with questions or to get started with a VA Loan.  You can also APPLY ONLINE

What is a Delaware VA IRRRL Refinance Mortgage Loan?

To better explain the VA Streamline Refinance loan, it’s important to understand what a Delaware VA loan is and who it services. Delaware VA loans are loans specifically designed for veterans and their loved ones. VA loans are guaranteed by the federal government and can be a great tool to get veterans into much needed homes. The defining characteristics of the VA Loan is that qualified veterans can buy a home with no money down – this makes the home buying process easy and affordable for military families. VA Loans also offer other perks like no private mortgage insurance and competitive mortgage rates.

How Do You Qualify for a Delaware VA Loan?

To Qualify for a Delaware VA Loan, Delaware veterans must have done one of the following:

  • Must have served 181 days during the peacetime
  • 90 days during war time
  • 6 years in the reserves or National Guard

Once you have a VA Loan, you can then qualify to refinance in the future using the VA IRRRL Refinance Loan.  To learn more about the Delaware VA Loan, call the John Thomas Team at 302-703-0727 or APPLY ONLINE to get started today.  We made the Best Va Lender List for 2018 and can help you get started!

What is the Delaware VA Streamline Refinance Loan?

The Delaware VA IRRRL Refinance mortgage loan is another loan program, or the Interest Rate Reduction Refinance Loan (IRRRL), is specific to veterans and is made available via the VA Loan Guaranty program. It’s sometimes called a VA-to-VA Loan.

Almost all active duty and/or honorably discharged Delaware service members are eligible for a VA purchase or Delaware streamline refinance loan. This helpful program allows veterans to refinance their current mortgage interest rate to a lower rate than they are currently paying. This loan is a popular option because of its ease of use. An experienced VA loan officer could complete the loan in about a month in many cases.


Closing costs from Delaware VA Loans can also be rolled into the cost of the loan, allowing refinancing with zero out-of-pocket expenses. In exchange for a higher interest rate on the loan, some lenders opt to take the brunt of the cost.

How do I Qualify for a Delaware VA Streamline Refinance Loan?

To qualify for a VA Streamline, Delaware veterans need to meet the following requirements:

  • The borrower must certify that they previously occupied the property.
  • The borrower must be current on their mortgage (no more than one 30-day late payment within the past year is allowed).
  • Your new monthly payment for the IRRRL must also be lower than the previous loan’s monthly payment. (The only time this condition does not apply is if you refinance an ARM to a fixed rate mortgage.).
  • The borrower must have previously used VA Loan eligibility on the property they intend to refinance.
  • The borrower must not receive any cash from the IRRRL.

Delaware VA IRRRL Refinance Mortgage Loan

What is the Delaware VA Cash-out Refinance Mortgage Loan?

Another VA refinance loan option is the Delaware VA Cash-Out refinance loan. The Delaware Cash-Out refinance allows borrowers to refinance their VA or conventional loan into a lower rate and also take cash from the home’s value.

The Delaware VA Cash-Out refinance loan would replaces an existing mortgage instead of functioning like a home equity loan, which it can be confused for because of similarities but is not. In some cases, qualified borrowers can refinance up to 100 percent of their home value with the loan.

The Cash-Out refinance loan is not limited to VA loans – it is also available with every other loan type, including USDA, FHA, or conventional. Delaware veterans generally choose the VA Cash-Out over the many other loan types because of the extended pay off period and the generally lower interest rate.

The home must be used as a principal dwelling by the owner to qualify. A thing to note: though there is no set period of time that you must have owned your home to qualify for the Delaware Cash-Out Refinance Loan, you must have sufficient equity to qualify for the loan.

What Other Things Should I Know About the Delaware VA IRRRL Streamline Refinance Loan?

There is a required waiting period for Delaware VA Streamline Refinance loans as of June 1st, 2018. The closing date of any new VA streamline loans must be after the both of these events have occurred:

  • About 7 months (210 days) must have passed since the first payment on the current VA loan
  • 6 full payments must have been made on the Delaware VA mortgage being refinanced

While you may receive up to $6,000 cash-in-hand at your VA IRRRL closing, the cash can only be used for energy-efficiency improvements, and it must be reimbursement for improvements made within 90 days prior to closing.

There is no maximum loan size limit for a VA loan. While there is no maximum allowable Delaware VA IRRRL loan size, a VA Streamline Refinance will be limited to the existing loan balance plus any accrued late fees/charges, typical loan costs and the cost of any energy efficiency improvements.

The John Thomas Team Can Help

There are many other factors and details about the Delaware VA IRRRL Refinance mortgage loan that you should consider. The John Thomas Team, voted Best VA Lender in Delaware and Newark by Ask A Lender, can help you go over everything you need to know about the loan. Visit our dedicated page for the Delaware VA IRRRL Refinance Mortgage Loan, call us at 302-703-0727, or Apply Online to get started today.

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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