Finance
A Louisiana borrower with a VA loan wants to refinance using the VA Interest Rate Reduction Refinance Loan (IRRRL). A key requirement is that:
AThe new loan must fund a primary residence purchase
BThe new loan must refinance an existing VA loan on the same property, and the interest rate must generally be lower✓ Correct
CThe borrower must re-qualify with full income and credit documentation
DThe property must be appraised at or above the original purchase price
Explanation
The VA IRRRL (streamline refinance) allows veterans with existing VA loans to refinance to a lower interest rate with minimal documentation and no new appraisal in most cases. The refinancing loan must pay off an existing VA loan on the same property.
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