Virginia
Virginia VA IRRRL: Streamline Refinancing for Hampton Roads to NoVA
Virginia has more VA loans per square mile than almost anywhere, and a reduced refinance recordation rate most people never ask about. Here is how to use both.
The saver
Ask about the refinance recordation rate
Let me start with money, because Virginia hides some in plain sight.
Virginia charges recordation tax on the deed of trust. On a refinance, the first tier drops to a reduced rate of $0.18 per $100, plus state and local pieces, as long as the prior deed book and page are cited. That citation is the trick. If your closing file does not reference your existing deed of trust, you can pay more than you need to.
On an IRRRL that matters. VA wants your closing costs recouped through monthly savings within 36 months. Every dollar you do not pay at recording makes that test easier.
Region walk
Where Virginia's VA homeowners are
Hampton Roads. Naval Station Norfolk, NAS Oceana, Dam Neck and Little Creek-Fort Story put sailors in Norfolk, Virginia Beach, Chesapeake and Suffolk. Huge VA loan density, and lots of families who PCS and rent the house out.
The Peninsula. Joint Base Langley-Eustis and Naval Weapons Station Yorktown cover Hampton, Newport News, Williamsburg and York County.
Northern Virginia. The Pentagon, Joint Base Myer-Henderson Hall, Fort Belvoir and Quantico. Arlington, Fairfax, Prince William, Stafford. Big balances, so even a modest rate drop moves real money. Also the region where a clean recordation calculation saves the most.
Richmond and the Tri-Cities. Fort Gregg-Adams, the old Fort Lee, near Petersburg, Colonial Heights and Hopewell.
Roanoke and Southwest Virginia. Fewer bases, plenty of veterans who came home with a VA loan.
Different regions, different balances, same federal loan. The IRRRL works the same way in Arlington as it does in the New River Valley. What changes is how much a rate drop is worth in dollars, and how much the recordation line weighs against it.
Closing
First RON state, and it shows
Virginia was the first state to allow remote online notarization, so a remote e-close is generally available. For a sailor on deployment or a soldier at a school, that is a big deal.
Settlement can be handled by a title company, attorney, broker or bank under CRESPA, with the Wet Settlement Act governing timing. Closings are wet and funds are held through rescission before your old loan is paid off.
Because settlement can be done by several kinds of providers, it is fair to shop. Ask each one two questions. Do you support a remote e-close? And will you cite the prior deed book and page so I get the refinance recordation rate? If the answer to either is a shrug, keep looking.
Signatures and fairness
Spouses, flipping and the net benefit
Non-titled spouse
Virginia abolished dower and curtesy in 1991. On singly titled property, a spouse not on title does not sign the refinance. Your title underwriter confirms vesting.
12-month anti-flipping test
Virginia applies a net-benefit test to refinances within 12 months. VA already requires a net tangible benefit, so a good IRRRL clears both.
Foreclosure
Virginia forecloses non-judicially. If your payment is pinching, a rate cut now buys breathing room.
Funding fee
0.5% on an IRRRL, waived if you receive VA disability compensation.
Are you ready
The VA checklist for a Virginia streamline
Your current mortgage has to be a VA loan. You need six monthly payments made and 210 days since the first payment due date, whichever is later. VA usually requires no appraisal and no income verification, though some lenders add overlays. You only need to certify that you lived in the home at some point.
Home Loans Inc holds Virginia Mortgage Broker License #MC-7017 in Virginia. Send me your rate, balance, first payment date and, if you have it, your deed book and page. I will run your Virginia IRRRL with the refinance recordation rate built in.
Virginia VA IRRRL questions
How do I get Virginia's lower refinance recordation rate?
Make sure the prior deed book and page of your existing deed of trust are cited in the refinance. Virginia then applies the reduced refinance rate of $0.18 per $100 on the first tier, plus state and local pieces. Ask your settlement agent to confirm it, because it directly lowers your IRRRL closing costs.
Can I close my Virginia IRRRL remotely while deployed?
Generally yes. Virginia was the first state to allow remote online notarization, so a remote e-close is usually available. Confirm with your settlement agent that they support it, and line up any documents early so the closing fits your schedule and the wet settlement timing.
Does my spouse sign if the Chesapeake house is only in my name?
Typically no. Virginia abolished dower and curtesy in 1991, so a spouse who is not on title does not have to sign a refinance on singly titled property. Your title underwriter will confirm vesting before closing, so tell them exactly how title is held.
I refinanced less than a year ago. Can I IRRRL again in Virginia?
Possibly, but two tests apply. VA seasoning requires 210 days from the first payment due date and six payments made, whichever is later. Virginia also applies a 12-month anti-flipping net-benefit test. If the new loan truly benefits you and costs are recouped within 36 months, it can work.
I left Fort Belvoir and rent out my Fairfax townhouse. Is it eligible?
Yes. An IRRRL only requires that you certify prior occupancy, so a rented home still qualifies. The current loan must be VA and seasoned, and the new loan must provide a net tangible benefit. Larger Northern Virginia balances can make even a small rate cut worthwhile.