Home loans

VA IRRRL: the streamline refinance

Lower the rate on a VA loan you already have, or swap an adjustable rate for a fixed one.

Beware of offers that sound too good to be true. VA and the Consumer Financial Protection Bureau warn about refinance offers that promise skipped payments or unrealistic rates. Read VA's fraud warning before you sign.

What it is

The Interest Rate Reduction Refinance Loan (IRRRL, often called a "streamline") replaces a VA-backed loan you already have with a new VA-backed loan, usually to get a lower rate and lower monthly payment. It can also move you from an adjustable rate to a fixed rate so your payment stops changing. You get it through a private lender, not from VA directly.

Who qualifies

All three must be true, per VA: you already have a VA-backed home loan; you are using the IRRRL to refinance that existing VA loan; and you can certify that you live in the home now or lived in it before. If a second mortgage sits on the home, that lender must agree to move behind the new loan.

What it costs

VA funding fee: 0.5 percent of the loan for an IRRRL (VA fee table effective 7 April 2023). VA says this rate does not change with down payment or earlier VA loan use.
No funding fee if you receive VA disability compensation, are eligible for it but receive retirement or active-duty pay instead, or receive Dependency and Indemnity Compensation as a surviving spouse. VA lists other exemptions on its fee page.
Lender closing costs, often thousands of dollars, and interest on the new loan. You can pay upfront, roll costs into the loan, or accept a slightly higher rate.

Quick check from VA: divide the closing costs by your monthly savings. That tells you how many months it takes to break even.

IRRRL funding fee

funding fee: 0.5 percent; effective: 7 April 2023.VA: Funding fee and closing costs · Page reviewed September 2026.

How to get it, step by step

Contact private lenders (banks, mortgage companies, credit unions). Ask several and compare.
Give the lender your Certificate of Eligibility, or let the lender pull it electronically.
The lender runs its own approval.
Close on the loan and pay the costs, or roll them in.

1Contact private lenders (banks, mortgage companies, credit unions). Ask several and compare.

2Give the lender your Certificate of Eligibility, or let the lender pull it electronically.

3The lender runs its own approval.

4Close on the loan and pay the costs, or roll them in.

Traps to avoid

A lower rate is not automatically a saving. Do the break-even math above.
Do not trust a company that calls or mails you first with a rate that sounds impossible.
If you got disability compensation awarded back to before your closing date, VA says you may be owed a refund of the funding fee.

Where to call and where to go

Phone

877-827-3702 (TTY: 711), Monday through Friday, 8:00 a.m. to 6:00 p.m. ET. Source: VA Home Loans contact page
Veterans Crisis Line, 24/7: 988, then press 1. Source: Helpful VA phone numbers

Official pages

Sources