Definition
VA IRRRL (VA Interest Rate Reduction Refinance Loan) is the VA's streamlined refinance exclusive to VA loan holders. It requires minimal documentation, no income verification, and sometimes no new appraisal. It's designed solely to reduce rates.
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Find my pathAbout this term
The IRRRL (pronounced 'Refi') is the VA's equivalent of the FHA streamline refinance. VA borrowers can refinance existing VA loans with minimal documentation, no income verification, and no new appraisal in many cases. The program requires a VA Certificate of Eligibility and an existing VA loan. IRRRLs are designed solely to reduce rates; cash-out options are limited. The program has no out-of-pocket closing costs if the borrower is willing to finance them. IRRRLs are rapid to close and ideal when rates drop.
Pro Tip
VA IRRRLs are ideal when rates drop; the streamlined process means you can refinance faster than conventional borrowers.
Example
A veteran has a VA loan at 5.0% and rates drop to 3.8%. They obtain an IRRRL with a streamlined process, no appraisal, and close within 3 weeks.