Streamline Refinance is one form of VA Loan Refinancing. It is also referred to as an Interest Rate Reduction Loan (IRRL). Streamline Refinancing is a way for individuals who already have VA loans to lower their current mortgage interest rate. Only borrowers who have used their eligibility for a VA loan will qualify.

Streamline Refinancing is beneficial in a number of ways. The most obvious way, of course, is that it allows the borrower to pay a lower interest rate. Also, this type of refinancing does not require any out-of-pocket expenses; all expenses are included in the new loan. Furthermore, Streamline Refinancing does not require as much documentation as many other typical loans (no income verification, appraisal, credit report, etc). Finally, occupancy requirements for Streamline Refinancing do not require that the borrower currently occupy the home, rather that they simply occupied it at one time.

Start Your Loan Request

Borrowers should consult a number of lenders before deciding to Streamline Refinance. Terms vary with different lenders, potentially creating large differences in the amount the borrower must pay. It is important to know that any lender can do a Streamline Refinance and the only expense to the borrower is a one-half percent funding fee required by VA (this may also be included in the loan).

Back to the Veterans' Loan Handbook Table of Contents.