Mortgage Navigator • VA Home Loans

VA IRRRL / Streamline Refinance

An IRRRL is a VA-to-VA refinance designed to lower the payment or make the loan more stable—not a general cash-out refinance.

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VA-to-VA only

The existing loan being refinanced must already be VA-backed. An IRRRL cannot refinance an ordinary conventional/FHA first lien into VA.

Occupancy is more flexible

VA permits the borrower to certify that they currently live in or previously lived in the home securing the loan.

Second mortgage

If a second lien exists, that lienholder must agree to subordinate so the new VA IRRRL remains the first mortgage.

Costs can be financed

IRRRL closing costs can generally be included in the new loan, or lender-paid through rate/pricing structure, subject to VA requirements.

Funding fee: the current IRRRL funding fee is 0.5% unless exempt.

Official VA baseline

VA Home Loans · VA Pamphlet 26-7 Lender's Handbook

VA sets the guaranty program rules, while private lenders underwrite and may impose overlays that are stricter than VA's baseline.