Generally, no appraisal, credit information or subscription is required in an IRRRL, and any lender can close an IRRRL automatically. The VA does not require credit underwriting or an appraisal for a refinancing loan with reduced interest rates. However, some lenders may require both, depending on their guidelines and each homeowner's specific situation. First of all, the VA doesn't require any appraisal package or credit underwriting.
However, you should keep in mind that lenders may require an appraisal and credit report anyway. The Department of Veterans Affairs, which administers the VA loan program, doesn't set a minimum credit score for IRRRL borrowers. Yes, buying two discount points should reduce your rate by 0.5%, and the VA requires a reduction of 0.5% in order to qualify for an IRRRL. The VA does not set minimum credit rating requirements for the VA's IRRRL and doesn't require lenders to check their rating at all.
Both simplified VA refinancing (IRRRL) and VA cash out refinancing are offered through the Department of Veterans Affairs mortgage lending program. The VA clarified this rule because it wants its new IRRRL rate to justify the closing costs of a new loan. In most cases, the VA won't ask lenders to submit their IRRRL loan application to a credit subscription. You could qualify for a simplified refinance (IRRRRL) from VA with a lower score because the VA doesn't require lenders to perform a credit check.
In addition, you can only apply for an IRRRL if you have already used your eligibility to apply for a VA loan on the same property you intend to refinance. For example, a veteran who is refinancing a 15-year VA loan could have at most a 25-year term in the IRRRL.
