If you already have a VA home loan and want to lower your interest rate — the Interest Rate Reduction Refinance Loan (IRRRL), also known as the VA Streamline Refinance, is your fastest path to savings. Designed specifically for veterans, the IRRRL cuts through red tape with minimal paperwork, no appraisal requirement in most cases, and some of the lowest closing costs in the industry.
What Is an IRRRL?
The IRRRL is a VA-to-VA refinance program that replaces your existing VA loan with a new one at a lower interest rate. Unlike a cash-out refinance, the IRRRL is strictly for rate-and-term improvements — you can't take cash out (except up to $6,000 for energy improvements).
Key takeaway: The IRRRL is the simplest refinance available. If your goal is purely to reduce your monthly payment or switch from an adjustable rate to a fixed rate, this is the program designed for you.
IRRRL Eligibility Requirements
- Existing VA loan: You must currently have a VA-backed home loan
- Net tangible benefit: The new loan must provide a measurable benefit (lower rate, lower payment, or fixed vs. ARM conversion)
- Occupancy: You must certify past or current occupancy of the property
- Payment history: No more than one 30-day late payment in the past 12 months
- Seasoning: At least 210 days since first payment on current VA loan, OR at least 6 payments made
IRRRL vs. VA Cash-Out Refinance
| Feature | IRRRL (Streamline) | VA Cash-Out |
|---|---|---|
| Purpose | Lower rate/payment | Access home equity |
| Funding Fee | 0.50% | 2.15% (first use) / 3.30% (subsequent) |
| Appraisal | Usually not required | Required |
| Credit Check | Varies by lender (minimal) | Full underwriting |
| LTV Limit | No limit | Up to 100% |
| Existing Loan | Must be VA loan | Any loan type |
| Disability Exemption | 0% funding fee | 0% funding fee |
Current VA Rates (February 2026)
VA loan rates remain competitive compared to conventional and FHA products:
- VA 30-Year Fixed: ~6.125% – 6.500%
- VA 15-Year Fixed: ~5.500% – 5.875%
- VA IRRRL: Typically 0.25% – 0.50% below new-purchase VA rates
🎖️ Disability Rating = No Funding Fee
If you have a VA disability rating (any percentage), you are exempt from the funding fee on all VA loan products, including the IRRRL. This saves $1,500–$12,000+ depending on your loan amount. Make sure your lender verifies your exemption status with the VA before closing.
How to Get the Best IRRRL Rate
- Shop at least 3 lenders. Rates and fees vary significantly between VA-approved lenders. Get Loan Estimates from at least three different sources.
- Compare total costs, not just rates. A lower rate with higher closing costs may not save you money. Calculate your break-even point.
- Watch for "no-cost" offers. Some lenders offer no-closing-cost IRRRLs by building costs into a slightly higher rate. This can be smart if you plan to move or refinance again within 3-5 years.
- Time it right. Lock your rate when you see a significant improvement over your current rate. Even a 0.50% reduction can save $100+ per month on a $300,000 loan.
- Avoid unsolicited offers. The VA has warned about predatory lenders sending misleading offers. If it sounds too good to be true, verify with your current servicer or the VA directly.
The IRRRL Process: Step by Step
- Verify eligibility. Confirm you have an existing VA loan and meet the seasoning requirement.
- Get quotes. Contact 2-3 VA-approved lenders for rate quotes and Loan Estimates.
- Choose a lender. Compare total costs, rate, and timeline.
- Submit application. Minimal paperwork — typically just income verification and the VA's Certificate of Eligibility.
- Close. Most IRRRLs close in 30-45 days. Closing costs can be rolled into the new loan.
- Start saving. Your new, lower payment begins with the first payment on the new loan.
Pro tip: Calculate your break-even point before refinancing. Divide total closing costs by monthly savings. If you plan to keep the home longer than the break-even period, the IRRRL is a smart financial move.
Ready to Explore Your Options?
Get personalized guidance on whether an IRRRL makes sense for your situation.
Get Free Tips & Updates →Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified professional before making financial decisions. Rates shown are approximate and subject to change.