The VA Loan IRRRL: An Overview 🏡

The Ultimate Guide to Understanding VA Loan IRRRL

Welcome to our comprehensive guide on VA Loan IRRRL. For veterans and active-duty military personnel, the VA loan is a popular option for financing a home. And, if you already have a VA loan, the VA loan IRRRL could be a great way to save money on your mortgage.

In this article, we’ll cover all you need to know about VA loan IRRRL. From its definition to its benefits to FAQs, you’ll find everything you need to make an informed decision about this option. So, let’s dive in and explore what the VA loan IRRRL is all about.

The VA Loan and Its Benefits

The VA loan is a mortgage loan guaranteed by the U.S Department of Veterans Affairs. This loan is exclusively available to veterans, active-duty military personnel, and their surviving spouses.

One of the main advantages of a VA loan is its flexibility. With no down payment requirements or private mortgage insurance, VA loans are a more affordable way to finance a home purchase or refinance an existing mortgage.

Another benefit of the VA loan is its low-interest rates. VA loans typically have lower interest rates than conventional loans, which can help reduce the monthly mortgage payments.

What is VA Loan IRRRL

The VA loan IRRRL (Interest Rate Reduction Refinance Loan) is a refinance option available to those who currently have a VA loan. It allows you to refinance your existing VA loan to a new loan at a lower interest rate without any out-of-pocket expenses.

The VA loan IRRRL is designed to help veterans save money on their monthly mortgage payments. However, it’s important to note that it doesn’t allow you to extract cash out of your home equity or consolidate debt.

How Does VA Loan IRRRL Work?

The VA loan IRRRL works by refinancing your existing VA loan to a new loan with a lower interest rate. The process is relatively simple and straightforward, and you can complete it with minimal documentation.

Here’s how the VA loan IRRRL works:

Step 1
Shop around for a lender offering VA loan IRRRL
Step 2
Provide the lender with your current VA loan documentation
Step 3
Complete the application process with the lender
Step 4
The lender will order an appraisal to determine your home’s value
Step 5
The lender will underwrite and approve the loan
Step 6
The new loan pays off the old loan, and monthly payments are reduced

VA Loan IRRRL Eligibility

To be eligible for VA loan IRRRL, you must meet specific criteria:

  • You must have an existing VA loan
  • You must be current on your mortgage payments
  • You can’t take out more than the outstanding balance of your current loan
  • You must certify that you previously occupied the property
  • You can’t have any late payments in the past 12 months

Benefits of VA Loan IRRRL

The VA loan IRRRL offers several benefits, including:

  • Lower interest rates
  • No out-of-pocket expenses
  • No need for a new Certificate of Eligibility (COE)
  • No appraisal or income verification required
  • Flexible loan terms

Drawbacks of VA Loan IRRRL

While the VA loan IRRRL has several benefits, it may not be suitable for everyone. Here are some of its drawbacks to consider:

  • You can’t extract cash equity or pay for debt consolidation
  • You might extend your loan term
  • You may have to pay a funding fee, which varies depending on your military status

FAQs about VA Loan IRRRL

1. What is VA loan IRRRL?

VA loan IRRRL is a refinancing option for existing VA loan borrowers to lower their monthly mortgage payments.

2. Who is eligible for VA loan IRRRL?

Eligible borrowers for VA loan IRRRL include those who already have a VA loan and have made at least six monthly payments.

3. How much can I borrow through VA loan IRRRL?

You can borrow up to the remaining balance of your existing VA loan plus allowable fees and charges.

4. Can I use VA loan IRRRL to refinance a non-VA loan?

No, VA loan IRRRL can only be used to refinance an existing VA loan.

5. Will I have to go through the credit check process again?

No, there’s no need for a new credit check or proof of income for VA loan IRRRL.

6. How long does it take to close VA loan IRRRL?

The VA loan IRRRL typically takes significantly less time to close than a conventional refinance, usually within 30 days or less.

7. Can I choose any lender for VA loan IRRRL?

You can choose any VA-approved lender to process your VA loan IRRRL.

8. Is there a penalty for paying off my VA loan early?

No, there’s no prepayment penalty for VA loans or VA loan IRRRL.

9. Can I roll over my VA loan IRRRL fees into my new loan?

Yes, you can finance the VA loan IRRRL fees into your new loan, but it will increase your loan balance.

10. Can I remove someone from my VA loan through IRRRL?

No, the VA loan IRRRL only allows for refinancing of the original loan and doesn’t provide an opportunity for removing someone from the loan.

11. Do I need a new VA appraisal for VA loan IRRRL?

In most cases, no appraisal is required for VA loan IRRRL.

12. Can I use VA loan IRRRL to refinance my second home or rental property?

No, VA loan IRRRL is only available for primary residences.

13. Can I switch from an adjustable-rate VA loan to a fixed-rate VA loan through IRRRL?

Yes, you can switch from an adjustable-rate VA loan to a fixed-rate VA loan through IRRRL.


VA loan IRRRL is an excellent option for eligible borrowers who want to save money on their monthly mortgage payments. With lower interest rates and no out-of-pocket expenses, VA loan IRRRL is a hassle-free way to refinance an existing VA loan.

If you’re interested in VA loan IRRRL, we encourage you to explore your options with a VA-approved lender. Make sure to assess your current financial situation and goals before deciding if VA loan IRRRL is the right move for you.

Closing or Disclaimer

The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. VA loan IRRRL offers and requirements may vary by lender and state. Please consult with a VA-approved lender for personalized information that is specific to your situation.