Better.com Introduces VA Rate Reduction Refi Loan

ByTMN Editor Reading Time: 2 minutes

Better.com has introduced a new loan product to boost affordability for veterans and active service members.

The VA Interest Rate Reduction Refinance Loan (VA IRRRL) is a streamlined refinancing solution for eligible veterans, active-duty service members, and surviving spouses.

“At Better.com, we are committed to honoring veterans for their service. The addition of VA IRRRL allows Better to give back to veterans and their families through mortgage offerings that make homeownership simpler and more affordable,” Vishal Garg, CEO of Better.com, said.

“As we look ahead with optimism to a more favorable interest rate environment, we are proud to simplify the refinancing process for veterans, helping those who have served our country save money and secure their financial future.”

Backed by the Department of Veterans Affairs, VA IRRRL lets borrowers refinance their existing VA loans with no appraisal, asset, or income verification requirements.

Service members can also take advantage of easier credit qualifications. The program simplifies the refi process by reducing paperwork and eligibility requirements, helping homeowners snag lower rates or to secure a fixed rate instead of an ARM or variable rate.

Better.com offers a fully digital experience, giving active-duty service members the flexibility to apply overseas or at home. Loan officers are available if needed through extended-hours call centers.

To qualify, borrowers must currently hold a VA loan in good standing. The VA IRRRL features a fixed-rate loan option and a reduced funding fee of 0.5%, which can be waived for certain disabled veterans and surviving spouses. Closing costs can be rolled into the new loan.

This offering is the latest example of Better’s investment in tech and automation, which speeds up the buying process and allows Americans who served to compete in a difficult housing market.

Earlier this year, it launched a similar FHA refinancing program without income verification or appraisal requirements.

The company suffered a tough 2023 driven by its embattled IPO. It merged with special purpose acquisition company Aurora Acquisition Corp in order to go public in August, but quickly faced cratering stock prices.

Earlier this year, Garg was found liable for breach of fiduciary duty and conversion in a lawsuit filed by his former partner and was ordered to pay $5.5 million. Garg plans to appeal.