What You Can and Can’t Do With The IRRRL Program


For eligible veterans who are seeking to refinance their current VA home loan to a lower rate, the VA IRRRL (Interest Reduction Rate Refinance Loan) program is usually the ideal solution for it.

With provisions that are more than just giving a lower mortgage rate, this refinancing program under the Department of Veterans Affairs is definitely something to consider. And like any other home loans, it’s good to know its scopes and limitations.

Got some questions of your own? Our lenders can give you answers.

You can refinance through a different lender.

If you want to, it’s possible to refinance through a different lender than your current one. But it’s nice to check with the lender holding your existing mortgage first. It’s best to shop around before you proceed with the refinance and see who gives you the best deal.

You can get refinancing without paying the upfront fees.

If you think you can’t cover out of pocket costs from closing costs, these costs can be folded into your loan principal.

You can use IRRRL to shift between adjustable-rate mortgages and fixed-rate mortgages.

Yes, this can happen. However, keep in mind that opting for a fixed-rate mortgage could mean a higher interest rate while changing to an adjustable-rate mortgage may put you to change rates in the future.

You can’t receive cash from the refinance.

If you seek to receive cash from refinancing, a VA Cash-out refinance is what you’re actually looking for. With an IRRRL, you can’t take out cash out of your new loan when you refinance. However, there is an exception. You only take up to $6,000 in cash only when you need to have home improvements and make your house more energy efficient.

You can’t refinance with an IRRRL if your current mortgage is not a VA home loan.

You can only use this refinancing program if your existing mortgage is from the VA. Refinancing non-VA mortgages is possible through other programs.

You can’t use your IRRRL to pay off other debts.

Combining your second mortgage with your existing one is not possible under the IRRRL program. Since this refinancing program only works for VA to VA loans only, you might want to consult your lender with what you can do.

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