VA Interest Rate Reduction Refinance Loan (IRRRL)

VA IRRRL Overview

If you currently have a VA-backed home loan and want to reduce your monthly mortgage payments*, or make your payments more stable, a VA Interest Rate Reduction Refinance Loan (IRRRL) may be right for you...

  • Save thousands over the life of your loan

  • Lower your interest rate and save on your monthly payments*

  • Does not require an appraisal, income or employment information, and there is no out-of-pocket cost to you

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What Does VA IRRL Mean?

VA IRRRL stands for Veteran Affairs Interest Rate Reduction Refinance Loan. 

What is a VA IRRRL?

The VA IRRRL loan is a "streamline loan" that allows VA borrowers to refinance their current mortgage to a lower rate, transition from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage or both. 

How Does a VA IRRRL Work?

The process requires very little paperwork on your end with little or no out-of-pocket expenses. If closing costs prove to be an issue, some borrowers have the opportunity of rolling their closing costs into the total loan amount using a government-backed option. Also, appraisals are rarely required, which can further simplify and speed up the process.

Does a VA IRRRL Require an Appraisal?

No appraisal or credit check is required by the VA and very rarely would a lender need to obtain an appraisal.

VA IRRRL Eligibility

  • You must have an existing VA loan and made your last three payments on-time

  • There must be a "net tangible benefit," which means that the IRRRL must have a lower interest rate than the loan that it is refinancing unless the loan is an Adjustable Rate Mortgage (ARM)

  • You can certify that you currently live in or used to live in the home covered by the loan 

*When it comes to refinancing your home loan, you can generally reduce your monthly payment amount; however, total finance charges may be higher over the life of your mortgage loan.

Security First Financial is here to answer any questions you have.

We can help you understand more about:

  • Home loan programs

  • Current mortgage rates

  • The home loan process

  • What you'll need for your application

  • What to expect after you complete your application