VA IRRRL Loans- Interest Rate Reduction Refinance Loan

IRRRL Mortgage Loans AKA VA Streamline

  • Main goal of an IRRRL is to allow a veteran to save money in monthly interest.  
  • Allow Veteran to refinance their loan in a streamlined manner
  • No appraisal is required when applying for a VA IRRRL Loan. 
  • A VA IRRRL can be completed with no money out of pocked by the veteran.
  • Veteran can refinance out of a VA Adjustable Rate Mortgage to a
    higher interest as long as its going onto a fixed term.
  • On a VA IRRRL your will not be able to receive any cash out from the refinance transaction.
  • IRRRL loans can only be used to refinance a property on which you have already used your VA loan eligibility on.  
 Other things to consider.  
  • Your Certificate of Eligibility (COE) is not required.  
  • If you have a second mortgage we will have to get the 2nd lien holder to subordinate that lien so the VA Loan will be in first position. 
  • The occupancy for a VA IRRRL is also different from other VA loans as a veteran only needs to prove they once occupied the home, bit not mandatory for an IRRRL.
  • One of the best things about this loan is they require much less paperwork than the VA Purchase Loan. 
  • A VA IRRRL will let you refinance your high interest rate loan into a lower rate loan with minimal fees and costs as compared to the initial loan.
  • How to Apply




IRRRL Funding Fee

Since a Veteran has already paid their VA Funding Fee in Full on their purchase loan for the home, the IRRRL Funding Fee is typically reduced.    
  • Most VA Borrowers will pay a .5% funding fee for their VA IRRRL Refinance loan.  
  • Veterans who had a service related disability that are deemed more than 10% disable that were honorable discharged are exempt from VA Funding Fees.   
  •  The surving spouse of a Veteran who died of a service related disablity is also exempt from the VA Funding fee.  
  • If you want up to date information and accurate funding fee information check the VA Funding Fee Chart