To qualify for a VA IRRRL, you must have an existing VA loan, seek to refinance that loan, and have made at least six on-time payments. VA IRRRL eligibility also requires a “net tangible benefit,” like a lower rate. You don’t need to live in the home currently, and no credit check is needed by the VA, though lenders may check. A 0.5% funding fee applies, and appraisals are typically waived.
What Exactly Is a VA IRRRL?
Quick story. My buddy Mike, a Navy vet, reached out last month. He bought his house in 2019 with a VA loan. Back then, rates weren’t terrible, but compared to today? Let’s just say the numbers weren’t doing him any favors. So we looked at the VA IRRRL. He didn’t want to mess with a full refi—just wanted a lower monthly payment and less hassle. Boom. That’s exactly what the IRRRL is made for.
The VA IRRRL is a special type of refinance loan available only to veterans, service members, and surviving spouses who already have a VA loan. You’re not getting cash out. You’re just replacing your current VA loan with a new one—hopefully with a lower interest rate or moving from an adjustable to a fixed. It’s called “streamline” because it skips the stuff that usually bogs down a refinance. Less paperwork. Less time. Less stress.
VA IRRRL Eligibility – Who Qualifies?
This is where a lot of people get thrown off. So I’m going to make this super clear. You must meet these requirements to be eligible for a VA IRRRL:
- You already have a VA-backed home loan.
- You’re using the IRRRL to refinance that exact loan—not a different one.
- You’re currently living in or used to live in the home secured by the VA loan. You don’t have to live in it currently—benefit of the IRRRL.
- You’ve made at least 6 full monthly payments on your current VA loan. And you’ve made those payments on time.
- It’s been at least 210 days since your first payment was due on the loan you’re refinancing.
- You’re actually saving money or locking into a more stable mortgage. (That’s called the “net tangible benefit” rule. Basically, the VA won’t approve the refi unless there’s a good reason.)
What’s That “Net Tangible Benefit” Rule Mean?
Told you I’d keep it real. No one wants to refi just for the sake of paperwork. That’s why the VA says your new loan has to do one of these things:
- Give you a lower monthly payment by reducing your interest rate
- Switch from a risky adjustable-rate mortgage (ARM) to a fixed-rate mortgage with more certainty
- Or—if your payment’s going slightly up due to switching to fixed—there better be a solid long-term benefit
If none of those are happening, you’re not getting the green light.
Who’s NOT Eligible for a VA IRRRL?
Let’s talk about who won’t qualify. Because yeah, there are some common deal breakers:
- You’re trying to refi a non-VA loan (this ain’t for you—check out a cash-out VA refi instead)
- You’re trying to pull equity out of your home (wrong loan type for that)
- Your VA loan is less than 6 months old or you haven’t made 6 full payments yet
- You’ve been late on payments—VA wants a good payment history
- Your current VA loan isn’t for your primary residence (if it ever was, you’re probably good, but check this with a lender)
If you’re trying to refi a loan you got with an FHA, conventional, or other type—not gonna work with a VA IRRRL. You’d need to look into VA cash-out refinancing instead.
Can I Do a VA IRRRL with Bad Credit?
Yep—you can. The VA doesn’t even require a credit check for an IRRRL. Crazy, right? Some lenders may still ask for one, but technically, it’s not needed under the VA rules. So even if your credit score isn’t golden right now, you might still be good to go. Just don’t assume anything. Always double-check with your lender’s policies.
Let’s Talk VA IRRRL Fees
Alright, real talk—there is a VA funding fee. That trips people up too. But it’s peanuts compared to a full VA loan. Right now, the fee is just 0.5% of your loan amount. And you can roll it into the loan. No upfront hit needed unless you choose to pay it in cash.
And just like with your original VA loan, some people may be exempt from paying the VA funding fee—like veterans with a service-connected disability. You’ll want to double-check your VA Certificate of Eligibility (COE) or talk to your lender about this part.
One More Thing—Occupancy Rules
Here’s a win with the VA IRRRL. You don’t have to live in the house currently. All you have to do is certify that you used to live in it as your primary home. That means if you’ve turned it into a rental or moved into a new spot, you can still refi with the IRRRL.
Pretty sick, right? That flexibility is rare. It’s one of the top reasons so many military homeowners love this program.
Real Story: VA IRRRL Helped Me Cut $300 off My Mortgage
This isn’t hype. When I did my IRRRL during the post-pandemic rate drops, I shaved almost $300/month off my mortgage. Didn’t have to get the house re-appraised. Didn’t need W-2s or piles of tax docs. Went from an adjustable-rate to a 2.25% fixed. All in under 30 days.
Just had to prove I lived in the house before, show payment history, get lender docs done, and boom—closed. That’s the power of knowing your VA IRRRL eligibility and acting on it.
FAQs – VA IRRRL Eligibility
1. Can I do a VA IRRRL with bad credit?
Yes! The VA does not require a credit check for an IRRRL. However, some lenders may still perform a credit check based on their own policies. Always confirm with your lender.
2. Are there any fees associated with a VA IRRRL?
Yes, there is a VA funding fee of 0.5% of the loan amount. However, this fee can be rolled into the loan, so you don’t have to pay it upfront. Some veterans, such as those with a service-connected disability, may be exempt from paying this fee.
3. Do I need to live in the home to qualify for a VA IRRRL?
No. Unlike a standard VA loan, you do not have to currently live in the home. You only need to certify that you previously lived in it as your primary residence. This makes it possible to refinance even if you have turned the property into a rental.
4. Do I need a home appraisal for a VA IRRRL?
No. One of the benefits of the VA IRRRL is that it typically does not require a home appraisal, which saves time and money.
5. How long does it take to close a VA IRRRL?
A VA IRRRL usually closes within 30 days, making it one of the fastest refinance options available.