If you already have a VA loan and your interest rate is higher than what’s available today, the VA IRRRL could save you hundreds of dollars a month with minimal paperwork and no appraisal. It’s one of the best refinance deals in lending, and most veterans don’t even know it exists.
Scott Carlin, 20-year Air Force veteran and VA loan specialist at TrueVet Mortgage (NMLS# 2613509), walks you through how the VA IRRRL works, who qualifies, and whether it makes sense for you in 2026.
What Is a VA IRRRL?
The VA Interest Rate Reduction Refinance Loan — known as the IRRRL or “VA Streamline Refinance” — is a refinancing program offered by the U.S. Department of Veterans Affairs. It allows veterans and service members who already have a VA-backed mortgage to refinance into a new VA loan with a lower interest rate, lower monthly payment, or more stable loan terms.
The IRRRL is called a “streamline” refinance because the VA has stripped away most of the typical refinance requirements. In most cases, there is no appraisal, no income verification, no employment verification, and no credit underwriting required by the VA. This makes it faster, easier, and less expensive than a traditional refinance.
Who Is Eligible for a VA IRRRL?
To qualify for a VA IRRRL, you must meet these requirements:
You must currently have a VA-backed mortgage. The IRRRL is a VA-to-VA refinance only — you cannot use it to refinance a conventional, FHA, or USDA loan into a VA loan.
You must certify that you previously occupied the property as your primary residence. You do not need to currently live in the home, which is helpful for military families who have PCS’d and turned the property into a rental.
The refinance must provide a net tangible benefit. This means the new loan must result in a lower interest rate, a lower monthly payment, or a switch from an adjustable rate to a fixed rate.
You must have made at least six consecutive on-time mortgage payments on your current VA loan, and at least 210 days must have passed since your first payment. This is called the loan seasoning requirement.
What Makes the IRRRL Different from Other Refinances?
The VA IRRRL is simpler than almost any other refinance option. Here is what makes it unique:
No appraisal required in most cases. This saves $400 to $600 and eliminates the risk of a low appraisal blocking your refinance.
No income or employment verification required by the VA. Your lender may have their own overlays, but the VA itself does not require these documents.
The VA funding fee is only 0.5% of the loan amount — compared to 2.15% for a first-time VA purchase loan. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely.
Closing costs can be rolled into the new loan, meaning you can often complete the refinance with zero out-of-pocket costs.
The process typically takes 10 to 14 days from application to closing.
When Does a VA IRRRL Make Sense?
A VA IRRRL makes sense if any of the following apply to your situation:
Your current VA loan interest rate is higher than today’s market rates. Even a 0.5% reduction can save you $100 or more per month on a $300,000 loan.
You have an adjustable-rate VA mortgage and want to lock in a fixed rate for stability and predictability.
You want to shorten your loan term from a 30-year to a 15-year mortgage to pay off your home faster and save on total interest.
You want to lower your monthly payment to free up cash for other financial goals.
The general rule is this: if the savings from the lower rate outweigh the closing costs within a reasonable timeframe, the IRRRL is worth it. Scott Carlin at TrueVet Mortgage can run the numbers for your specific situation and tell you exactly how much you would save.
What About the Net Tangible Benefit Requirement?
The VA requires every IRRRL to provide a net tangible benefit to the borrower. This prevents predatory refinancing where a lender repeatedly refinances a veteran’s loan without meaningful savings.
For a fixed-rate to fixed-rate refinance, your new interest rate must be at least 0.5% lower than your current rate.
For a fixed-rate to adjustable-rate refinance, the new rate must be at least 2% lower than your current rate.
The new loan term cannot exceed 30 years or 10 years longer than the remaining term on your current loan, whichever is shorter.
In all cases, your new principal and interest payment must be lower than your current payment.
VA IRRRL for Military Families Who Have PCS’d
One of the most valuable features of the IRRRL is that you do not need to currently live in the home. If you bought a home with a VA loan at one duty station and then PCS’d to another, you can still refinance that property with a VA IRRRL — even if it is now a rental property.
This is particularly useful for military families in Florida and Texas who purchased homes near bases like Patrick Space Force Base, MacDill AFB, NAS Jacksonville, Fort Hood, or JBSA and later received orders to a new installation. If interest rates have dropped since you bought the home, the IRRRL lets you lock in a lower rate and reduce your monthly payment without the hassle of a full refinance.
How Much Does a VA IRRRL Cost?
The costs on a VA IRRRL are significantly lower than other refinance options:
The VA funding fee is 0.5% of the loan amount. On a $300,000 loan, that is $1,500. This can be rolled into the loan.
Standard closing costs including title insurance, recording fees, and lender fees typically range from $2,000 to $5,000 depending on your loan amount and location.
No appraisal fee is required in most cases.
Most veterans complete the VA IRRRL with no money out of pocket by rolling the funding fee and closing costs into the new loan balance. While this slightly increases your loan amount, the monthly savings from the lower interest rate typically far outweigh the small addition to principal.
VA IRRRL vs VA Cash-Out Refinance
The VA IRRRL and the VA Cash-Out Refinance serve different purposes:
The IRRRL is strictly for lowering your rate or changing your loan terms. You cannot take cash out of your home equity with an IRRRL.
The VA Cash-Out Refinance allows you to borrow against your home equity and receive cash at closing. It requires a full appraisal, income verification, and credit underwriting. The funding fee is also higher — 2.15% for first-time use and 3.3% for subsequent use.
If your only goal is to lower your interest rate or switch from an adjustable to a fixed rate, the IRRRL is the faster and cheaper option. If you need cash from your equity, the Cash-Out Refinance is the right tool.
Note for Texas homeowners: Texas law limits all cash-out refinances, including VA cash-out refinances, to 80% of the home’s appraised value. This restriction does not apply to VA IRRRLs since no cash is being taken out.
Frequently Asked Questions
How long does a VA IRRRL take to close?
TrueVet Mortgage typically closes VA IRRRLs in 10 to 14 days from application to funding.
Do I need a new Certificate of Eligibility for an IRRRL?
Your lender can pull your COE electronically. If you have your original COE from your purchase loan, bring it to speed up the process.
Can I do a VA IRRRL if I am underwater on my mortgage?
Yes. Because no appraisal is required, there is no loan-to-value limit on a VA IRRRL. You can refinance even if you owe more than the home is currently worth.
Is there a credit score requirement?
The VA does not set a minimum credit score. However, most lenders require at least 580 to 620. TrueVet Mortgage works with veterans across a range of credit profiles.
How many times can I use the VA IRRRL?
There is no limit on the number of times you can refinance with a VA IRRRL, as long as each refinance meets the loan seasoning requirement and provides a net tangible benefit.
Do I pay the VA funding fee on an IRRRL?
Yes, the funding fee is 0.5% of the loan amount. Veterans with a service-connected disability rating of 10% or higher are exempt. The fee can be rolled into the loan.
Can I switch from a 30-year to a 15-year loan with an IRRRL?
Yes. Shortening your term is one of the qualifying net tangible benefits. Your monthly payment may increase, but you will pay significantly less interest over the life of the loan.
Should I refinance my VA loan in 2026?
If your current rate is 0.5% or more above today’s rates, it is worth exploring. Scott Carlin at TrueVet Mortgage can run a break-even analysis to show you exactly how much you would save and how quickly the refinance pays for itself.
Ready to See If a VA IRRRL Can Lower Your Payment?
If you currently have a VA loan and want to lower your rate, switch to a fixed rate, or shorten your loan term, the VA IRRRL is the fastest and most affordable way to do it.
Call Scott Carlin at 321-364-4461 or visit our Schedule a Call page to book a free VA refinance consultation. Scott is a 20-year Air Force veteran and VA loan specialist serving military families across Florida and Texas. NMLS# 2613509.
Check your 2026 BAH rate with our free BAH Calculator to see how your housing allowance factors into your refinance decision.
Scott, currently sitting at 6.75% on my mortgage. Curious if now is the right time to refinance with the IRRRL or wait for possible lower rates down the line.
That’s the million dollar question. Are rates going to go down even further or go back up. No one really know for sure. At 6.75% you could save a ton of money on your monthly payment right now. I think I would pull the trigger.