What You Need to Know About the VA Streamline Refinance

How much does a VA streamline refinance cost?

US flagsThe streamline refinance is a great option for veterans and military spouses who are looking to lower their monthly mortgage payment without having to go through a full loan approval process.

In this article, we'll discuss what the VA streamline refinance is and answer some of the most common questions about this program. The VA Streamline Refinance (IRRRL) program allows veterans to refinance their current VA home loan at a lower interest rate. This mortgage product does not require an appraisal, income verification, or credit requirements.

The streamlined process is designed to make the refinancing process as easy as possible for veterans. In this article, we will provide an overview of the IRRRL program, including the benefits and eligibility requirements. We will also discuss how to apply for a VA streamline refinance and the steps involved in the process.

The VA interest rate reduction loan (IRRRL) may be the very best refinance loan for a veteran. Why? The IRRRL does not require an appraisal, income verification, or credit requirements.

The IRRRL program was created by the 1980 Veterans' Disability Compensation and Housing Benefits Amendments to assist veterans who desired to reduce their monthly payments by taking advantage of low interest rates.

Can I get an IRRRL?

If you fulfill all the conditions for an IRRRL, you may be eligible for an interest rate reduction loan. All the following conditions must be met:

  • You already have a house loan secured by the VA, and it
  • is your intention to utilize the IRRRL to refinance your existing VA-backed home loan, and you can confirm that you presently reside in or formerly resided in the house covered by the loan.

VA Reduces Requirements

There are a few requirements for the interest rate reduction loan:

  • The existing loan must be VA.
  • The refinancing interest rate must be lower than the previous interest rate.
  • The new loan must be a VA-to-VA refinance that keeps the previous entitlement intact.
  • The borrower is simply required to demonstrate that he or she has previously occupied the residence.
  • You must not have missed any payments in the preceding year. If the property has any liens, they must be subordinated to the VA loan.

Are there closing costs with a VA Streamline refinance?

There are closing fees associated with IRRRLs. However, the refinancing costs are generally much lower than the costs of purchasing a property. Discount point(s), environmental title endorsements, flood zone determination, prepaid property taxes, hazard/homeowner's insurance, recording fees, overnight mailing fees, title examination fee, and title insurance fee are all possible closing costs.

An origination fee of up to one percent of the loan amount may be charged. In addition to this flat cost, the lender may charge the following fees, all of which are not to exceed 1%:

Commitment or, document preparation fee, interest rate lock-in fee, loan closing or, marketing fees, notary fees, processing fees, conveyance fees, settlement fees, tax service fees, trustee’s fees or charges (if applicable). There may be additional fees that are not listed.

The closing and prepaid costs may be rolled into the loan balance, paid in cash at settlement, or possibly paid by a lender concession.

Is it possible to use a VA streamline on an investment property?


Does the VA IRRRL allow you to remove a spouse?

The IRRRL program allows you to remove a deceased or divorced spouse from your home debt. Non-spouse co-borrowers, such as a roommate or friend, may also be removed. A member of the military must be listed as a borrower to be eligible for the VA loan program.

Does VA Streamline Require an Appraisal?

IRRRLs do not need an appraisal or credit underwriting, but lenders may charge and include in the loan any reasonable credit report or appraisal cost they deem necessary to achieve their lending requirements.

Does VA Streamline require a credit check?

The lender will take a peek at the borrower's credit report to confirm that there were no late payments for the previous 12 months and that the current loan is up-to-date. No credit evaluation other than payment history is necessary.

How long does VA Streamline Refinance take?

Since an appraisal is not required and the documentation is reduced, 30 to 40 days is a good estimate to complete the refinance transaction.

How much does a VA streamlined refinance cost?

The VA streamline refinance cost will vary from state to state. A VA lender should be able to provide you with a reasonable estimate.

Is the VA's IRRRL program worth it?

The VA IRRRL loan program does not require credit qualifications or appraisal requirements.

Is it possible to receive cash out of a VA IRRRL?

Cash out is not allowed, unless it is for energy-efficient home improvements. Up to $6,000 may be included with a streamlined VA loan. The maximum amount of $500 is permitted.

What is the funding fee for a VA streamline refinance?

With an IRRRL refinance, you have to pay 0.5 percent of the loan balance in addition to the customary closing costs. The funding fee is necessary to help support the VA loan program. Example: 200,000 X.5% = $1,000.

What is the maximum loan amount for an interest rate reduction loan?

In most cases, you can borrow up to the conforming loan maximum set by Fannie Mae and Freddie Mac in most areas—and even more in certain high-cost counties—with a no-down-payment loan.If you wish to put down a larger deposit, you may borrow more than this amount.


A VA streamline refinance is a great way to get into the market before rates increase again. You can save money on your monthly payments by getting one.

A “streamline” refinance may benefit you in the following ways:

  • Reduce your monthly mortgage payment by obtaining a lower interest rate from your lender.
  • You may make your monthly payments more predictable by moving from an adjustable or variable interest rate (an interest rate that rises over time) to a fixed interest rate (the same interest rate over the life of the loan).