We have a lot of veterans come to us with their questions. That’s why we’ve put together some of the most common VA mortgage questions that we get asked. If there’s a VA mortgage related question we haven’t answered here, contact us and a licensed mortgage advisor will help you.
VA Streamline (IRRRL)
What is a VA IRRRL?
A VA IRRRL (Interest Rate Reduction Refinance Loan), also known as a VA Streamline, is a VA-backed refinance designed to lower your interest rate, monthly payment, or both with reduced documentation
Do I need to qualify again with income or employment verification?
No. VA Streamlines do not require income, employment, or asset verification.
Is an appraisal required for a VA IRRRL
No. An appraisal is not required for a VA Streamline refinance.
Can I refinance if my home value is lower than my loan balance?
Yes. VA IRRRLs allow refinancing regardless of loan-to-value, as long as VA net tangible benefit requirements are met.
What is the “net tangible benefit” requirement?
The VA requires the refinance to clearly benefit the borrower—such as lowering the interest rate, reducing the monthly payment, or converting from an adjustable-rate mortgage to a fixed-rate loan.
How much can my interest rate drop?
For fixed-to-fixed refinances, the VA generally requires at least a 0.50% interest rate reduction, in most cases the drop is considerably more depending on your current rate and market conditions.
Can I roll closing costs into the loan?
Yes. Closing costs are rolled into the new loan balance so there is not out of pocket expense.
Is cash-out allowed with a VA IRRRL?
No. VA IRRRLs are strictly for rate and payment improvement. However, the VA does offer a VA Cash-Out Refinance program for borrowers who want to access equity for personal use, debt consolidation, or home improvements.
Is there a waiting period before I can do a VA IRRRL?
Yes. You must wait 210 days from your first payment on the current VA loan and make at least 6 consecutive on-time payments.
Can I skip or defer mortgage payments with a VA IRRRL?
Yes. Depending on the closing date, borrowers typically defer up to two mortgage payments.
Will I get an escrow refund?
Yes. In most cases, your current lender will issue an escrow refund check after your existing loan is paid off. This refund is separate from your new loan.
Do I have to live in the home to do a VA IRRRL?
No. The property must have been your primary residence at some point, but it may now be a rental or second home.
What credit score is required for a VA IRRRL?
The VA does not set a minimum credit score requirement to take advantage of a streamline.
Does a VA IRRRL use my VA entitlement again?
No. The refinance uses your existing VA entitlement and replaces your current VA loan.
Is there a VA funding fee on an IRRRL?
Yes. The reduced VA funding fee is 0.5% of the loan amount and can be rolled into the loan. Veterans receiving VA disability compensation are exempt from this funding fee.
How long does a VA IRRRL take to close?
VA Streamlines are designed to be fast. Most loans can close in as little as 2 weeks.
Will my monthly payment always go down?
Yes. VA Streamlines are intended to lower monthly mortgage payments.
Can I change my loan term with a VA IRRRL?
Yes. You may shorten or extend your loan term, provided the refinance meets VA net tangible benefit guidelines.
Are adjustable-rate mortgages eligible for IRRRLs?
Yes. Many borrowers use a VA IRRRL to refinance from an ARM into a fixed-rate loan.
How do I know if now is a good time to do a VA IRRRL?
If current market rates are lower than your existing rate, it is a strong opportunity to save money on your mortgage. A payment comparison and breakeven analysis from our loan experts will confirm the monthly savings.
Do you offer adjustable-rate options like AARM?
Yes. In addition to fixed-rate VA IRRRLs, we offer the 5-YR ARM program for qualified borrowers. This program offers a lower rate compared to fixed.
What documentation is required for a VA Streamline (IRRRL)?
VA Streamlines are documentation-light. Most borrowers only need:
- Valid government-issued photo ID
- Current mortgage statement
- Homeowners insurance declarations page
Who Is MortgageRight?
MortgageRight is a veteran-owned mortgage lender with over 20 years of experience helping veterans and military families maximize their VA home loan benefits.
Is MortgageRight a Veteran-Owned Lender?
Yes. MortgageRight is proudly veteran-owned, built on firsthand understanding of military service and the VA benefits veterans have earned.
