What is a VA Streamlined Refinance (IRRRL)?

An Interest Rate Reduction Refinance Loan (IRRRL) is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing VA loan.

Benefits for an IRRRL

  • Generally, no appraisal, credit documentation or underwriting is required on an IRRRL (minimal documentation required)
  • Lower VA Funding Fee (0.500% of loan amount) compared to regular VA refinance loan (no funding fee when veteran has a service connected disability)
  • Loans typically close much faster based on limited documentation required

Requirements for an IRRRL

  • An IRRRL must bear a lower interest rate than the loan it is refinancing (unless the loan it is refinancing is an ARM),
  • The principal and interest payment on an IRRRL must be less than the principal and interest payment on the loan being refinanced unless one of the following exceptions applies:
    • the IRRRL is refinancing an ARM, or
    • term of the IRRRL is shorter than the term of the loan being refinanced.
  • The maximum loan term is the original term of the VA loan being refinanced plus 10 years (but not to exceed 30 years and 32 days).  For example, if the old loan was made with a 15-year term, the term of the new loan cannot exceed 25 years. 
  • The subject property must be the veteran’s (whose entitlement was used on the loan being refinanced) primary residence, and 
  • The loan being refinanced must be seasoned for at least 6 months prior the funding date of the new loan.

Credit Underwriting

No credit information or underwriting is required unless:

  • The monthly payment (PITI) will increase 20 percent or more.

If the monthly payment (principal and interest) increases by 20 percent or more, the applicant(s) must be credit qualified for the new proposed monthly payment.

Program Guidelines

Primary Residence

VA Interest Rate Reduction: Loan to be refinanced must be a VA loan. If paying off a non-VA loan or obtaining cash out, please visit "VA Fixed Rate Mortgages" program guidelines
Property Type Max Loan Amount1 Max LTV Max CLTV Min FICO
ALL 424,100 100 100 660
ALL 650,000 100 100 680
ALL 1,000,000 100 100 700
Risk-Based Add-OnsAdded to Points or Subtracted from Rebate, All Add-Ons are Cumulative

FICO Score

<= 60%
720+ (0.250) (0.250) (0.250) (0.250) (0.250) (0.250) (0.250)
660-719 0.000 0.000 0.000 0.000 0.000 0.000 0.000
VA Funding Fee Table

VA Streamline Refinance Transactions

Veteran/Military Status Percentage for
First Time Use
Percentage for
Subsequent Use
Veteran/Active Duty 0.50% 0.50%
Reserves/National Guard 0.50% 0.50%
Disabled Veteran (Service Connected Disability) 0.00% 0.00%


(1) Maximum loan amount is lower of amount listed or max county loan limit. Includes VA funding fee if financed.

Our most popular program! Because 30 years is the longest term available, the monthly payments will be the lowest of any of the fixed rate programs.
Our second most popular program! You pay a lower rate and build equity faster than you would with a longer term program. The monthly payments are higher, but the savings over the life of the loan are considerable.