- Who it is for
- Homeowners with an existing VA loan
- Appraisal
- Usually not required
- Funding fee
- 0.5%, waived if exempt
- Cash out
- None
What it is
The Interest Rate Reduction Refinance Loan, known as the IRRRL or VA streamline, replaces an existing VA loan with a new one at a lower rate or moves an adjustable rate to a fixed one. It is built to be faster and lighter on paperwork than a standard refinance.
How it works with a broker
The VA requires the refinance to leave you better off, which generally means a lower rate or a move to a fixed rate, and it sets a minimum time since your current loan closed. Many lenders skip the appraisal and income documentation.
Lenders add their own rules and price the IRRRL differently, so I compare several and calculate how many months it takes for the savings to cover the costs.
Common questions
Do I have to live in the home?
No. You only need to certify that you lived there previously, which makes the IRRRL an option for a former home you now rent out.
Can I roll the costs into the loan?
Usually, yes. Closing costs and the funding fee can be added to the new loan balance, so little or no cash is needed at closing.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.