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Interest Rate Reduction Refinancing Loan for Veterans

By: Grant Moon 04/03/12 07:30 am

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Interest Rate Reduction Refinancing Loan (IRRRL), also called VA Streamline, is a loan taken by veterans to refinance an existing VA loan. This is to reduce the existing interest rates, or to convert an Adjustable Rate Mortgage to Fixed Rate Mortgage. If you want to take an IRRRL, you have to meet certain stipulated requirements, including:

  1. IRRRL can be used to refinance only an existing VA guaranteed loan
  2. The new loan amount may not be more than the sum of the outstanding balance of the existing loan, in addition to the allowed fees and closing costs. Up to $6000 can be included for energy efficient improvements
  3.  Veterans should not receive any cash proceeds from the refinance
  4. If there is a second mortgage on the property, the holder must agree to subordinate the lien, so that new VA loan becomes the first mortgage

Benefits of the IRRRL include:

– VA does not require fresh appraisals, or documents for credit worthiness. However, some lenders may ask for it
– Veteran need not submit his or her Certificate of Eligibility; the lender can verify this from the previous information submitted.
– With regard to the Occupancy Rule, the veteran only needs to certify that he or she has occupied the property.
– An additional funding fee of 0.5% is required by the VA. This can be included with the new loan amount, or paid in cash at the time of closing. Veterans eligible for compensation from VA can avoid the funding fee.

Are you looking for options on refinancing your home?

VA Loan Captain, Inc. is a veteran owned business that facilitates VA Home Loan Purchase and Refinances through our platform of lenders that offer competitive rates for veterans and servicemembers. Our pre-screened lenders sign and operate under our Veterans Guarantee Pledge ensuring competitive interest rates, ethical dealings, and high service standards.  As company with purpose beyond profits, our Veterans Pay It Forward Program provides $200 to a partner veteran non-profit of the customer’s choice for every loan closed.   Please visit us at for more information.


VA Loan Captain, Inc. is a service disabled veteran owned small business registered in the state of New Jersey.® is a diversified housing, benefits, education, and services platform assisting current and former servicemembers to receive the information, value, and services that they deserve.® has partnerships with veteran focused non-profits and charities that provide services to veterans but is not affiliated with the VA or any government agency.

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