Housing

VA Interest Rate Reduction Refinance Loan (IRRRL)

A streamline refinance of an existing VA-backed loan to a lower rate or from an adjustable to a fixed rate, with a 0.5% funding fee and usually no appraisal.

Also called: IRRRL, streamline refinance, VA refinance, VA rate reduction.

For: Veteran or service member.

Where it applies

Applies in states and territories.

Federal

An IRRRL refinances a loan that is already VA-backed into a new VA-backed loan, to lower the interest rate or to move from an adjustable to a fixed rate. The veteran must certify that they live in the home now or used to live in it. If there is a second mortgage, its holder must agree to subordinate it. The funding fee is 0.5% of the loan, and closing costs can be rolled into the new loan. A veteran exempt from the funding fee, such as one receiving VA compensation, pays none. The loan goes through a private lender, not VA. VA's recoupment rule requires the savings to cover the closing costs within 36 months, and VA warns veterans to be careful with refinance offers that promise skipped payments or rates that sound too good to be true.

Thresholds

Thresholds for VA Interest Rate Reduction Refinance Loan (IRRRL)
Gate	Rule
Existing VA-backed loan	The loan being refinanced must already be VA-backed.

Documents the source lists

What the official source lists for an application, and where to get each document. It is a reference read from the source, not a full list of what the office may ask for; check with the office or an accredited representative before you apply. Needed means the source asks for it; Helps means the source calls it optional or says it speeds things up.

Helps The COE you used for your original VA-backed loan
Where to get it Request it on VA.gov, or ask your lender to get it through VA’s lender portal.
Listed by VA, Interest rate reduction refinance loan read 2026-10-10

Figures

Each figure is dated with the day it was read. A local figure moves whenever the statute or the local ordinance does, so confirm it with the office that grants it before you rely on it. Statute verified gives the day the weekly section check last found the statute standing on the legislature’s own code site; a figure without it rests on a statute the check does not read yet.

Dated figures for VA Interest Rate Reduction Refinance Loan (IRRRL)
Figure	Amount	Read from
IRRRL funding fee	0.5% of the loan38 U.S.C. 3729(b)(2)(E)	VA funding fee and loan closing costsRead 2026-10-08

Sources

Interest Rate Reduction Refinance LoanOfficial
VA funding fee and loan closing costsOfficial

Updated

Last updated 2026-10-08.

What changed then:

First published.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.