Quick answer
An IRRRL (Interest Rate Reduction Refinance Loan) is the VA’s streamline refinance: it replaces an existing VA-backed loan with a new VA loan, usually at a lower rate and with less paperwork than a regular refinance. You must certify that you live in the home now or did in the past.
Key facts
Rules set by law
Under 38 U.S.C. 3709, a fixed-to-fixed IRRRL needs a rate at least 0.5% lower, in percentage points, than the old one (2% when moving to an adjustable rate). The loan being refinanced must have 6 consecutive monthly payments and be at least 210 days past its first payment due date. Fees and closing costs — not counting taxes, escrow amounts or the VA funding fee — must be recouped through lower payments within 36 months. The streamline refinance guide compares the IRRRL with FHA’s version.
Example: the recoupment test
A $300,000 balance at an example rate of 7.99% with 28 years left, refinanced to a 30-year loan at 7.24%, cuts principal and interest by $194 a month. With $4,000 of closing costs, recoupment takes 21 months, within the limit of 36 months. The funding fee of 0.5%, $1,500 here, can be added to the loan.
Related terms
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- U.S. Department of Veterans Affairs — VA funding fee, Interest Rate Reduction Refinance Loan (IRRRL) (Apr 7, 2023)
- 38 U.S.C. 3709 — VA IRRRL: fees and closing costs must be recouped within; VA IRRRL fixed-to-fixed: new rate at least this much lower; VA IRRRL fixed-to-adjustable: new rate at least this much lower (Oct 28, 2026)
- VA: Interest Rate Reduction Refinance Loan
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