VA IRRRL: Refinance With The VA IRRRL Program

The VA IRRRL is a funny name for a program that helps Veterans who currently have a VA loan get a lower monthly mortgage payment. IRRRL stands for “Interest Rate Reduction Refinance Loan” and is sometimes referred to as the VA streamline refinance program.

VA IRRRL Benefits

Some of the benefits and guidelines to the VA IRRRL program include:

  • With the IRRRL program, it is not possible to get any cash out of the equity of your home at closing.
  • The IRRRL program allows your new VA insured loan to be either a fixed rate or an adjustable rate loan.
  • The IRRRL refinance process requires less paperwork than when the original VA loan was given.
  • A VA IRRRL refinance may not require an appraisal depending on the VA approved lender that helps you with the VA IRRRL program.
  • Depending on which VA approved lender you use, a minimum credit score may not apply when participating in the VA IRRRL refinance.
  • It is possible (and normal) to roll all closing costs and fees into the new loan so there are no out-of-pocket charges to you.
  • The new monthly payment on the new VA loan must be lower than the old loan (unless going from an adjustable rate to a fixed rate).
  • If going from a fixed rate to a fixed rate, the IRRRL reifnance requires that your new interest rate be lower than the old one.
  • It is possible to finance up to $6,000 of energy efficient home improvements with the IRRRL program.
  • To be eligible for the IRRRL program, you must be current on your current VA loan and can’t have more than one 30-day late payment in the last 12 months.

If you currently have a VA loan and are interested in learning more about the requirements for the VA IRRRL program, be sure to speak with a loan officer at a VA approved lender who can answer your specific questions.