VA Interest Rate Reduction Refinance Loan (IRRRL)
Key Features of a VA IRRRL
• No appraisal required in most cases
• No income or employment verification required
• No out-of-pocket costs in many situations (costs can often be rolled into the loan)
• Faster and simpler process compared to a traditional refinance
• Must result in a net tangible benefit to the borrower (lower rate, lower payment, or more stable loan)
What Is a “Net Tangible Benefit”?
The VA requires that the refinance clearly benefits the veteran. This usually means:
• Lowering the interest rate
• Reducing the monthly payment
• Moving from an adjustable rate to a fixed rate
• Improving long-term financial stability
NOTE: This rule is in place to protect veterans from unbeneficial refinancing.
Who Typically Benefits Most from an IRRRL?
A VA IRRRL may be a good option if you:
• Currently have a higher interest rate than today’s market
• Want to lower your monthly payment
• Have an adjustable-rate VA loan and want a fixed rate
• Prefer a refinance with minimal documentation and faster closing
Seasoning Requirements
Before using a VA IRRRL, the following must be true:
• At least 210 days have passed since your first mortgage payment due date
• You’ve made at least 6 monthly payments on your current VA loan
Occupancy Requirement
You do not need to currently live in the home
• You must have lived in the home previously
• Investment properties are allowed if prior occupancy can be verified
Still have questions about your benefit?
Thank you for choosing us. We are dedicated to helping you achieve your homeownership goals with personalized service and expert guidance. For more information or assistance, feel free to reach out to us anytime!
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Your VA Loan Advisor
Bryce Pierce
