A VA Interest Rate Reduction Refinance Loan (IRRRL), often referred to as a "VA Streamline Refinance," is a program offered by the U.S. Department of Veterans Affairs designed to help eligible veterans and service members refinance their existing VA home loans to secure a lower interest rate or switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

Who Qualifies for a VA IRRRL?

To qualify for a VA IRRRL, you must:

• Already have a VA-backed home loan.
• Use the IRRRL to refinance the existing VA loan (not a conventional or FHA loan).
• Must be current on your mortgage payments with no more than one 30-day late payment in the past year.

Benefits of a VA IRRRL

• Lower Interest Rate: Reduces monthly payments by securing a better interest rate.
• Simplified Process: Often does not require income verification, a home appraisal, or a new Certificate of Eligibility (COE).
• No Out-of-Pocket Costs: Closing costs can be rolled into the new loan, or the lender may offer a no-cost refinance in exchange for a slightly higher rate.
• Stability: Refinance from an ARM to a fixed-rate loan to avoid future rate increases.

How Soon Can You Refinance with a VA IRRRL?

To prevent "churning" (excessive refinancing that can hurt borrowers), the VA has set specific seasoning requirements before you can use an IRRRL:

• You must have made at least six consecutive monthly payments on your current VA loan.
• At least 210 days must have passed from the first payment date on your original VA loan.

So, in short, you generally must wait about 7 months after getting your VA loan before you can refinance it through an IRRRL.

Additional Considerations

• A funding fee (generally 0.5%) applies, but it can be financed into the loan.
• In an IRRRL cannot be used to take cash out of home equity—only to reduce the rate.

*The VA IRRRL is a powerful tool for veterans and service members looking to reduce their monthly mortgage costs or stabilize their payments. Its streamlined process and minimal requirements make it one of the most accessible refinance options for those with existing VA loans.

Jesse Young
Neighborhood Loans

jyoung@neighborhoodloans.com
📞 817-939-1467 (Direct)