Calculate the Break-Even Point
Figure out how many months it will take for your monthly savings from the lower payment to cover the VA Funding Fee
VA IRRRL Program: The Simplest Path to Lower Payments
Exclusively for Veterans. No appraisal. Fast and hassle-free rate reduction.
What Is the VA IRRRL Program?
The VA IRRRL program, formally known as the Interest Rate Reduction Refinance Loan, is a streamlined refinancing option guaranteed by the Department of Veterans Affairs (VA). It is designed only for homeowners who currently have an existing VA-backed mortgage. The goal of this program is to quickly lower the interest rate or convert an adjustable-rate mortgage (ARM) to a fixed-rate loan with minimal documentation.
Easiest and fastest option for eligible Veterans to reduce mortgage interest rates.
It requires less paperwork and skips common requirements like a home appraisal.
There should be a clear financial benefit, like a lower rate or more stable payments.
Benefits of the Interest Rate Reduction Refinance Loan
Choosing the Interest Rate Reduction Refinance Loan is an intelligent financial move for current VA borrowers who want to save money and simplify their debt. The process is designed by the VA to be as beneficial and accessible as possible.
Lower Monthly Payment Potential
The primary purpose is to secure a lower interest rate, which reduces principal and interest payment every month.
No Appraisal or Credit Underwriting
Most of the time, the VA IRRRL doesn’t need a new home appraisal or much income and credit review.
Convert ARM to Fixed Rate
Easily switch from a variable-rate VA loan to a stable, long-term fixed-rate mortgage for predictable payments and financial security.
Closing Costs Can Be Financed
You can roll the VA Funding Fee (a low 0.5%) and other allowable closing costs into the new loan amount.
Flexible Occupancy Rules
Unlike the original VA purchase loan, you only need to certify that you previously occupied the home.
VA IRRRL Loan Types
The VA IRRRL program itself is a single, unique loan product designed to simplify the refinance of a VA loan. However, we offer flexibility in how the new loan is structured so you can choose the term that best supports your long-term financial goals.
Fixed-Rate Term Options :
You can choose a new term (e.g. 15, 20, or 30 years) to meet your new payment goal.
No-Cost IRRRL :
We cover the closing costs in exchange for a slightly higher interest rate.
Energy Efficiency Improvement (EEI) Add-On :
Eligible borrowers may add funds for energy-efficient upgrades like insulation or new windows.
Funding Fee Financed :
The 0.5% VA funding fee (waived for eligible disabled Veterans) can be rolled into the new loan.
Standard IRRRL (Borrower Pays Costs) :
Borrower pays closing costs upfront to secure the lowest possible interest rate.
VA IRRRL Requirements
The qualification standards for the Interest Rate Reduction Refinance Loan are minimal compared to other loan types, which is why it’s considered "streamline." The VA focuses primarily on your current mortgage status and payment history. Here are the core VA IRRRL requirements
Existing VA Loan
You must already have a VA-guaranteed loan on the property you intend to refinance, because it is a "VA-to-VA" program.
Net Tangible Benefit
The new loan must result in a clear financial benefit, such as a lower rate or switching from an ARM to a fixed-rate loan.
Seasoning Period
You must have made at least six consecutive monthly payments on the existing VA loan, and the first payment must be at least 210 days old.
Payment History
You generally must have no more than one 30-day late payment in the last 12 months, demonstrating current and responsible repayment behavior.
Certification of Occupancy
You must certify that you either currently occupy the home or previously occupied it as your residence.
No Cash-Out
The loan proceeds can only be used to pay off the existing VA loan and finance the allowable charges, which means no extra cash back is permitted.
How to Get a VA IRRRL with Rize Mortgage
As experienced VA IRRRL lenders, Rize Mortgage makes the streamline process simple for you. We focus on efficiency to get you a lower rate and payment as quickly as possible.
Check Eligibility and Benefit :
Contact a Rize Mortgage specialist to confirm your VA loan status and benefits.
Submit Minimal Documentation :
Provide your existing VA loan information and sign the initial application.
Rate Lock and Processing :
We help you lock in the best available VA IRRRL rate and initiate the streamlined process.
Final Underwriting and Disclosure :
Our team quickly reviews your file for VA IRRRL compliance and prepares the Closing Disclosure.
Closing and Funding :
Sign your final documents and your new lower-rate VA loan is funded immediately.
Tips for Maximizing Your VA IRRRL Savings
1
Ask About Lender Credits
Speak with a Rize Mortgage loan officer to see if a small interest rate increase will allow you to pay all your closing costs.
2
Reduce the Loan Term
If your budget allows, consider refinancing into a shorter term (e.g., from 30 to 15 years) to save thousands in interest.
3
Confirm Funding Fee Exemption
If you are a Veteran with a service-connected disability rating, ensure the 0.5% VA Funding Fee is waived on your paperwork.
4
Keep Mortgage Payments Current
Keep a perfect payment record before applying, having a clean history is one of the main requirements.
5
FAQ (Frequently Asked Questions)
Is the VA IRRRL Worth It?
Yes, the VA IRRRL can be worth it if it lowers your interest rate, monthly payments, or converts an adjustable-rate mortgage to a fixed-rate VA loan. This streamlined refinance is designed to reduce costs and simplify the process for veterans and service members. Because it often requires little documentation and no appraisal, closing costs can be lower than a standard refinance.
Does VA IRRRL Require a Credit Check?
Typically, VA IRRRLs do not require a full credit check, though some lenders may perform one to ensure your ability to make payments. The VA streamlined program prioritizes reducing paperwork and simplifying the refinance process. Lenders may verify your payment history on the existing VA loan instead of doing a traditional credit review.
How Many Times Can You Use VA IRRRL?
There’s no strict limit to how many times you can use a VA IRRRL, if you meet program guidelines and eligibility requirements. Each VA IRRRL replaces an existing VA loan, so borrowers can refinance multiple times if it lowers interest rates or improves loan terms. Lenders may impose waiting periods between refinances, but overall, veterans can take advantage of IRRRLs multiple times during their homeownership.
Can You Get Cash Out on a VA IRRRL?
No, VA IRRRLs do not allow cash-out; it is strictly for lowering interest rates or changing loan terms. If you need cash from your home equity, you must use a VA Cash-Out Refinance instead. The IRRRL is designed to simplify the refinance process, reduce monthly payments, and convert loans to fixed rates without adding new debt.
Do You Need an Appraisal for a VA IRRRL?
No appraisal is typically required for a VA IRRRL, which speeds up the refinancing process. The program is streamlined, so lenders rely on the original loan and property information rather than ordering a new appraisal. Some lenders may request an appraisal under certain conditions, but in most cases, it is not necessary.
Ready to Reduce Your Rate?
Don't wait to access the benefits you've earned. Contact a Rize Mortgage specialist today to explore the VA IRRRL program.
