What is a VA IRRRL?
Despite its long name, the VA IRRRL (pronounced “Earl”), or VA streamline refinance, is one of the most efficient ways to refinance an existing VA loan. It’s a special kind of VA loan refinance typically requiring no income requalifying, no appraisal and fewer documents, leading to a faster closing than traditional refinance types. It’s often used to lower monthly payments, switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan, or both—without a lot of hassle.
How does a VA IRRRL streamline refinance work?
Step-by-step IRRRL process
A VA IRRRL simplifies the refinance process into just a few key steps. You’ll work with a VA-approved lender to confirm your eligibility, adjust your loan terms and close—usually within 30 days or less.
- Confirm eligibility. You must already have a VA-backed loan and meet basic program requirements. Visit va.gov for more details.
- Find a VA-approved lender. Shop around—rates, terms and fees can vary. A little upfront research can help you save more over time. Citi, for example, is a recognized VA loan lender, offering expertise in managing VA IRRRL loans efficiently.
- Apply. The paperwork is minimal, and you likely won’t need a new Certificate of Eligibility (COE). Your lender can usually access an electronic copy from the VA.
- Close on your new loan. Most IRRRLs close in about 30 days. You can often roll closing costs into the new loan, which means less cash out of pocket.
PRO TIP
Be cautious of any offers that sound too good to be true, like skipped payments or exceptionally low interest rates. Always ask questions, read the fine print and make sure the numbers make sense for your situation.
Who Is eligible for a VA IRRRL?
You may qualify for a VA streamline refinance if you:
- Currently have a VA-backed loan
- Live in or have previously lived in the home covered by the loan
- Are up to date on mortgage payments and in good standing with your current lender
A couple other points to note:
If you have a second mortgage, that lender must agree to let the new VA-backed loan stay in first position. And importantly, your new loan must meet the VA’s “Net Tangible Benefit” rule, which is one of the VA IRRRL guidelines established to ensure refinancing offers a clear financial benefit to the borrower. In short, the new loan must offer an advantage, such as a lower interest rate or a more stable loan structure.
VA IRRRL rates and typical costs
One of the biggest perks of a VA IRRRL is the rate. VA streamline refinance rates are usually lower than market averages, especially when compared to conventional refinance options.
That said, it's important to shop around. Rates fluctuate daily, and your final rate will depend on factors like your credit score, loan term and loan structure. Comparing offers from multiple VA-approved lenders can help you find the best deal.
2025 rate snapshot
Based on a $300,000, 30-year fixed rate loan
| Feature | VA IRRRL | Conventional Loan |
|---|---|---|
| Average interest rate | 6.125% | 6.85% |
| Est. monthly payment | $1,822.83 | $1,965.78 |
| Monthly savings | $142.95 | = |
Source: Freddie Mac
Over five years, that monthly amount adds up to more than $8,500 that you can save by choosing a VA IRRRL over of a traditional refinance.
PRO TIP
Thinking about refinancing? Our Mortgage Refinance Calculator can help you decide if it’s worth it.
VA IRRRL closing costs explained
While there’s no down payment or mortgage insurance required, there are still standard closing costs to plan for. The good news is that most of these costs can be rolled into your loan, so you may not have to pay them up front.
Some lenders also offer what’s called a “lender credit,” meaning they’ll cover the closing costs in exchange for a slightly higher interest rate.
Typical VA IRRRL closing costs may include:
- Title and recording fees
- Real estate taxes
- Title insurance
- Lender origination fees
- VA funding fee
A note on the VA funding fee: Even though the fee applies to IRRRLs, it’s much lower than the fee for a typical VA purchase loan. For most borrowers, it’s 0.5% of the loan amount. Some people may qualify for an exemption, including active-duty members who received the Purple Heart.
VA IRRRL vs. traditional refinance
The VA IRRRL was designed for ease and speed. Since it’s a no-cash-out refinance and doesn’t tap into your home equity, it’s one of the simplest refinance options available to eligible VA loan holders. Here’s a quick look at how it compares to traditional refinancing.
| Feature | VA IRRRL | Traditional Refinance |
|---|---|---|
| Who qualifies | VA loan holders only | Open to most borrowers |
| Appraisal | Not required | Required |
| Income verification | Not required | Required |
| Interest rates | Often lower than market averages | Varies by lender and credit score |
| Typical timeline | 30 days or less | 30-45 days or more |
| Closing costs | Can be rolled into the loan | Typically paid at closing |
Key differences in requirements
The biggest difference between a VA IRRRL and a traditional refinance is how easy the process can be. It’s available only to borrowers with an existing VA loan, and there’s no appraisal, no income check and far less paperwork. Most close in under 30 days, and you can usually roll closing costs into the loan. By contrast, traditional refinancing is open to more borrowers but comes with more steps: income and credit checks, a full appraisal and more time to close.
Pros and cons of VA IRRRLs
Like any loan option, a VA IRRRL has its strengths and limitations. Here’s a closer look at both to help you decide if it’s the right move for you.
| PROS | CONS |
|---|---|
| Streamlined process with less paperwork | Available only to current VA loan holders |
| No appraisal required | No cash-out option |
| No income or employment verification | VA funding fee applies (typically 0.5% of the loan amount) |
| Typically lower interest rates | Must meet a “net tangible benefit” requirement |
| Most closing costs can be rolled into the loan | Rates and terms vary by lender, so shopping around is still important |
| Ideal for switching from an ARM to a fixed-rate mortgage |
When should you consider a VA streamline refinance?
When rates drop or plans change, a VA IRRRL can help you make the switch to a more affordable or stable loan with less hassle. Here are some common scenarios when refinancing could be the right move.
- Interest rates have dropped, or you want lower monthly payments
Even a modest rate drop could lead to meaningful savings, especially if you’re early in your VA loan term. Keep in mind: Rates need to be lower than your current rate unless you’re moving from an ARM. - You want to move from an ARM to a fixed-rate loan
Locking in a stable rate can offer peace of mind and protects against future increases. In this case, your new rate does not have to be lower, but you must be able to recoup closing costs, fees and expenses within 36 months of the refinance. - You need to remove a co-borrower from your loan
After events like a divorce or separation, a VA IRRRL may help update loan ownership, though this depends on your lender’s specific guidelines.
PRO TIP
Refinancing within 36 months of your last VA loan may still be worth it. If rates have dropped or you’re switching to a fixed-rate loan, the long-term savings could outweigh the short-term costs—especially if you plan to stay in your home for a while.
