VA IRRRL — the simplest refinance for veterans.
The VA Interest Rate Reduction Refinance Loan: no appraisal, no income verification, and often no out-of-pocket cost.
How it works
- You must have an existing VA loan
- No appraisal required in most cases
- No income or employment verification in most cases
- Must produce a net tangible benefit (lower rate or payment)
- No cash out allowed
- VA funding fee: just 0.5% — can be financed into the loan
Requirements
- Existing VA loan
- Current on payments — no 30-day lates in past 12 months
- Refi must reduce your rate or payment (or switch ARM → fixed)
- You must have previously occupied the home (current occupancy not required)
Pros & cons
Pros
- No appraisal — works even if value dropped
- No income docs on most files
- Lowest funding fee of any VA program (0.5%)
- Can close with zero out-of-pocket cost
- Available even on former primary residences (now rentals)
Cons
- Only available to existing VA borrowers
- No cash out — use VA Cash-Out for equity access
- Net tangible benefit rule limits some scenarios
- Funding fee still applies (waived for VA-rated disabled veterans)
Who it's best for
- Existing VA borrowers when rates drop
- Veterans who PCS'd and converted the home to a rental
- ARM holders wanting to lock a fixed rate
- Anyone who wants the cheapest, fastest VA refinance
FAQs
Do I need an appraisal for a VA IRRRL?+
No — in most cases the VA waives the appraisal entirely. The IRRRL is designed to be simple: VA uses the existing loan as the basis for the new loan, so no value check is required. (There's one exception: if you're rolling significant closing costs and the new loan exceeds the original loan amount, some lenders may want a desktop or AVM value.)
What is the VA funding fee for IRRRL?+
The IRRRL funding fee is just 0.5% of the loan amount — the lowest funding fee of any VA loan. It can be financed into the loan, so it doesn't have to come out of pocket. Veterans with a service-connected disability rating are exempt from the funding fee entirely.
Can I do a VA IRRRL if I moved out of the home?+
Yes. The IRRRL only requires that you previously occupied the home as your primary residence — you don't have to live there now. This makes it one of the few refinance options that works for veterans who PCS'd and turned the old home into a rental.
How fast does a VA IRRRL close?+
Most VA IRRRLs close in 14–21 days. With no appraisal and no income verification on most files, the underwriting is light and the timeline is one of the fastest in the industry.
Can I take cash out with a VA IRRRL?+
No. IRRRLs are strictly rate-and-term — no cash out. If you want to tap equity, you'd use a VA Cash-Out Refinance (a separate program with full underwriting, appraisal, and a higher funding fee).
What is net tangible benefit on a VA IRRRL?+
VA requires the refi produce a meaningful improvement: a lower interest rate, a lower monthly payment, or moving from an ARM to a fixed rate. Refinancing into a longer-term loan that costs more over time generally won't satisfy the rule.
Get a real refinance quote
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