What Is an IRRRL?

The Interest Rate Reduction Refinance Loan (IRRRL, pronounced "earl") is a streamlined VA-to-VA refinance. It's only available to homeowners with an existing VA loan, and it's designed for one thing: lower your rate, lower your payment.

0
Appraisal required
0.50%
Funding fee
14–21 days
Typical close
0
Income re-verification

What Makes It Special

  • No appraisal required. No worry about whether values have dropped.
  • No income or employment verification. Lenders typically don't pull income docs or order verifications.
  • No credit qualification in the traditional sense — only a soft pull confirming you've been making on-time payments.
  • Reduced funding fee: 0.50% (vs. 2.15%–3.30% for a purchase or cash-out).
  • No money out of pocket — closing costs can be rolled into the new loan or paid via a lender credit.
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Eligibility Shortlist

You qualify for an IRRRL if: you have a VA loan, you've made 6+ payments, 210+ days have passed since your first payment, and you're current on your loan.

The Rules

  • The new rate must be lower than the old rate (unless refinancing from an ARM to fixed).
  • Payment must decrease OR the loan term must shorten (e.g. 30-year → 15-year IRRRL).
  • The home must be (or have been) your primary residence at some point.
  • You must be current on your existing VA loan with no more than one 30-day late in the past 12 months.
  • You must have made at least 6 payments on the current loan, and at least 210 days must have passed since the first payment due date.

Timeline

IRRRLs often close in 14–21 days — sometimes faster. Because there's no appraisal and minimal underwriting, the bottleneck is usually title work and document preparation.

Costs

  • 0.50% VA funding fee (waived if you have 10%+ service-connected disability)
  • Title insurance (reissue rate available)
  • Florida doc stamp and intangible tax on the new loan amount
  • Recording fees
  • Prepaid interest

You'll see total closing costs typically in the $2,500–$5,000 range, all of which can be rolled into the new loan.

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Florida State Tax Still Applies

Even on a streamlined IRRRL, Florida charges doc stamp + intangible tax on the new loan amount. These can be rolled into the loan, but don't be surprised at the disclosure.

Break-Even Math

If your closing costs are $3,500 and your new payment is $200/month lower, your break-even is 17.5 months. After that, every month is pure savings.

One important note: rolling closing costs into the loan adds principal you'll pay interest on for 30 years. If you can pay the costs at closing instead, do it — you'll come out ahead long-term.

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When NOT to Do an IRRRL

  • You want cash out — IRRRLs do not allow cash out. Use a VA cash-out refi instead.
  • You're switching from VA to Conventional to drop the funding fee — that requires a full refinance, not an IRRRL.
  • Your remaining balance is small and closing costs would consume most of the savings.

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