George's Blog

The IRRRLs (Interest Rate Reduction Refinance Loans) are a loan program for Veterans who already own their home, and they used a VA loan to purchase it. Like everyone else, they may want to take advantage of the lower interest rates, and historically they would have used the IRRRLs to do that. This loan is a streamlined loan, meaning that there is minimal documentation- the credit is checked, history of the loan payment being made on time, verification of employment were sufficient- and NO APPRAISAL was ever needed, until last year.

In mid 2009, lenders started requiring appraisals on the properties, whereas for the previous 60 years they did not. Immediately veterans whose homes were "underwater" were unable to refinance, losing a valuable benefit, and the ability to save hundreds of dollars a month. In many cases this makes the difference of a veteran being able to keep their home.

The US House of Representatives VA Subcommittee is looking into this, and how to fix it- write your Member of Congress- No Appraisals for VA refis!