Refinancing Tips · February 17, 2025
VA IRRRL: The Fastest Refinance Available to Veterans
The VA Interest Rate Reduction Refinance Loan is one of the most streamlined refinance programs in existence. Here's how veterans can lower their rate fast.
The VA IRRRL (Interest Rate Reduction Refinance Loan) is widely considered the most efficient refinance program available.
Key Features
- No appraisal required in most cases
- No income verification
- No out-of-pocket costs option (costs financed into loan)
- No VA-imposed credit score minimum
- Faster closing than standard refinances
- Remains a VA loan — preserves the benefit
Eligibility
- Existing VA loan only (IRRRL refinances VA to VA)
- Loan must be current (no 30-day lates in past 12 months)
- Net tangible benefit required: fixed-to-fixed needs at least 0.5% rate reduction; ARM-to-fixed doesn't need to be lower (stability is the benefit)
The Funding Fee
IRRRL funding fee is just 0.5% — significantly lower than purchase or cash-out VA loans. Can be financed into the loan. Disabled veterans are exempt.
What IRRRL Cannot Do
- Take cash out (for equity access, use VA Cash-Out Refinance)
- Add borrowers not on the original loan
- Refinance a non-VA loan (use VA Cash-Out for that)
VA Cash-Out Refinance
If you want equity access, the VA Cash-Out allows refinancing up to 100% of the appraised value — the most generous cash-out limit of any major loan program.
HMS specializes in VA financing. Call 309-222-8286 for your VA refinance options.