Also Known as the Interest Rate
Reduction Refinance Loan (IRRRL)
What is a VA Streamline Refinance (IRRRL)?
The VA Streamline Refinance is available for those who
already have a VA loan (VA to VA loan). It is used to
refinance to a lower mortgage rate, shorter term loan or
from an adjustable rate to a fixed rate.
What are the requirements for the IRRRL?
- The current loan must be a VA loan.
- There cannot be more than one 30 day late payment on
the current loan within the past year.
- The borrower cannot receive any cash-out through
refinancing the original loan.
- The borrower must certify that they previously occupied
the property at one time.
- The monthly mortgage payment must be lower than the
current mortgage payment unless the borrower is
refinancing from an adjustable rate loan to a fixed rate loan.
- If there is a second mortgage, the lien holder must
subordinate so that the VA loan is in first place.
What are the benefits of a VA
- The IRRRL requires very little paperwork and
documentation than traditional refinances.
- The borrower can refinance with no out of pocket
expenses because the closing costs can be added to the loan
- A new Certificate of Eligibility is not necessary.
- Borrowers can use any lender since it is not mandatory to
use the original lender.
- There is minimal credit underwriting.
- Income verification is usually not required.
- The IRRRL does not require an appraisal (depending on
the lender and other factors).
- The IRRRL can be used for investment property since the
borrower must only certify that they have previously lived
in the home.
- Borrowers may be able to finance up to $6,000 of energy
efficient home improvements with an IRRRL.
- The entire process is easy and quicker than other loans.
The VA Streamline Refinance is a simple means to save
money for those who already know and enjoy the benefits of
To find out more about the IRRRL, please contact Brian
Thomas at (888) 913-5531 or email at: