What is a VA IRRRL?

The military is the king of acronyms. The IRRRL moniker stands for the Interest Rate Reduction Refinance Loan, sometimes referred to as a VA streamline. When a borrower wants to refinance an existing VA loan, by far the streamline is the best option. Why? Because as the name implies, the process is “streamlined” with very little paperwork required other than a completed loan application.  As long as the veteran is refinancing an existing VA mortgage into a new one, the loan may qualify, and you don’t have to use the same lender you used last time.

The VA streamline mortgage requires no appraisal, no credit check and no income or employment documentation as long as the refinance “makes sense” by lowering your monthly payment, refinancing out of an ARM and into a fixed or changing your loan term. There are a few basic requirements but they’re relatively easy to meet:

You must be current on your mortgage and no more than one payment more than 30 days past the due date within the previous year you must have previously occupied the property and used your VA home loan benefit to buy and finance the home.

This means if you kept the property as a rental or vacation home, you can still refinance the existing VA loan using the VA streamline. VA loans are used only to purchase a primary residence and not for investment properties. However, as long as you initially occupied the home then later moved to another, you’re still eligible. You can also roll closing costs into your loan amount as well which means you don’t need to come to the closing table with any out of pocket expenses but you can’t take out any cash during the transaction.


If you’re thinking about refinancing your existing VA loan, speak with an experienced loan officer to review your various options. For those who want to buy a home with as little cash to close as possible, the VA home loan is by far the best choice for those eligible. And the bonus? The VA streamline makes it even better.

For more information or an online inquiry, please visit our website at http://www.mhlmtg.com/va
or Call us at 1-844-462-8971

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