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VA Streamline Refinance (VA IRRRL)

Streamline your savings with a VA IRRRL.

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What is a VA streamline refinance loan?

The official name for a VA streamline loan is the "interest rate reduction refinance loan." Or just "IRRRL" for short. Together, both names paint a pretty good picture of what this loan is. Basically, it's a fast and easy loan that's meant to lower the interest rate on your current VA mortgage.

When should I refinance my home with an IRRRL?

VA streamline loans are a great option if:

  • You already have a VA loan
  • Interest rates are currently low
  • You want to get out of your VA ARM loan
  • You don't currently live in the home
  • You don't want to bother with an appraisal

Pros & cons of refinancing with a VA streamline loan (IRRRL)

Before deciding to refinance with an IRRRL, you should understand all the benefits and potential negatives. Luckily, the good news that an IRRRL has tons of pros and very few cons, so it's almost always a great choice.

 
Pros of a VA IRRRL:
  • No appraisal
  • No income or employment verification
  • In the past year we have closed streamlines in as little as 20 days or less
  • Your interest rate must drop at least 0.5%
  • A lower mortgage payment
  • Up to two months of deferred mortgage payments
  • No out-of-pocket closing costs
  • Very low funding fee
  • May receive a refund of your escrow balance
  • You can add an EEM for home improvements
Cons of a VA IRRRL:
  • Can't take any cash out
  • No debt consolidation
  • IRRRLs can only be used on existing VA loans
  • There is a strict waiting period before you can qualify for an IRRRL

Frequently Asked 'VA Streamline' Questions


What Is a VA Streamline?

The Benefits of a VA Streamline

Are There Closing Costs?

Can I Get Cash Back at Closing?

What are the requirements to get an IRRRL?

To get an IRRRL, you must already have a VA loan. In addition, you must have previously occupied the home (though it doesn't currently need to be your primary residence).

In addition to these basic requirements, you can only get an IRRRL if it meets the following three requirements:

  • Loan Seasoning – Your original loan is seasoned when you've made at least 6 consecutive monthly payments AND it's been at least 210 days since your first monthly payment was due

  • Net Tangible Benefit (NTB) Test – The IRRRL must lower your interest rate by at least 0.5%, though it may be by as much as 2% if you're moving into an ARM loan*

  • Recoup Rule – The closing costs from your IRRRL must be recouped within 36 months; this recoup is based on how much you save with your new monthly payment

*The only exception to the NTB test is if you are moving from an ARM into a fixed rate loan. In this situation, your interest rate is allowed to increase because the benefit is that you will be in a more stable loan.

How to

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If you want to lower your interest rate quickly and painlessly, our loan officers are here to help.

Call today about a VA streamline refinance: (866) 569-8272.

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