The VA streamline refinance, tested against the rules that protect you
Does this IRRRL pass the tests?
Rule check
An IRRRL replaces an existing VA-backed loan with a new VA-backed loan. Federal law adds three checks before VA will guarantee it: the fees and costs must be recouped through lower monthly payments within 36 months, the loan being refinanced must be seasoned, and the new rate must clear a minimum reduction set in the statute. Those rules exist to protect you from refinances that cost more than they save.
Last reviewed against the primary sources listed below.
ToolRecoupment calculatorMonths to earn back the costs.WhoEligibilityVA loan to VA loan.Test 1RecoupmentThe 36-month rule.Test 2Seasoning210 days and six payments.Test 3Rate reductionThe statutory minimum.CostsFeesWhat counts and what does not.CasesOccupancy and ARM to fixedTwo common situations.New guideAppraisal and creditWhat VA requires and what lenders may add on a streamline refinance.New guideIRRRL feeThe funding fee on a streamline refinance and who is exempt.GlossaryKey termsPlain definitions with sources.GuideAnother lenderWhy you can shop IRRRLs beyond your current lender.GuideCash at closingWhy IRRRLs are not a way to take equity.PrintableLender questionsQuestions to bring to any lender, ready to print.
Independent, not official
This is not a government website. VA's own IRRRL page and the text of 38 U.S.C. 3709 are the authorities.