MAXIMUM LOAN TERM

The maximum loan term for a VA Streamline Refinance Loan is the original term of the VA loan being refinanced plus 10 years, but not to exceed 30 years and 32 days.

TITLE/LIEN REQUIREMENTS

The VA IRRL must replace the existing VA loan as the first lien on the same property.

• Any second lien-holder would have to agree to subordinate.
• The borrower cannot pay off liens other than the existing VA loan from IRRL proceeds.

The veteran (or surviving co-obligor spouse) must still own the property.
 

WHO CAN A VA IRRL BE MADE TO?

• Generally, the party(ies) obligated on the original loan must be the same on the new loan (and the veteran must still own the property).

The lender should contact VA regarding a proposed VA IRRL involving a change in obligors unless the acceptability of the IRRL is clear based on information and examples in this section.
 

OCCUPANCY REQUIREMENT

For IRRLs, the veteran or the spouse of an active service member must certify that he or she previously occupied the property as his or her home. This is different than the requirement for non-IRRL VA loans that the veteran must intend to personally occupy the property as his or her home.
 

CREDIT UNDERWRITING QUALIFICATIONS

No credit information or underwriting is required for a VA Streamline Loan unless

• The loan to be refinanced is 30 days or more past due,  or
• the monthly payment (PITI) will increase 20 percent or more.

Reference: See " Payment Decrease/Increase Requirements" on this page

TREATMENT OF LATE PAYMENTS AND LATE CHARGES

All late payments and late charges (and reasonable costs if legal action to terminate the old loan has commenced) can be rolled into the new loan.

If the amount of late payments, late charges and legal costs is significant, the proposed monthly payment will be adversely impacted. Carefully analyze whether the IRRL would benefit the veteran and not create unacceptable risk to the Government in light of the new monthly payment.
 

IRRL CLOSING COSTS

The following fees and charges may be included in an Interest Rate Reduction Refinancing Loan (IRRL):

• Any allowable fees and charges. This includes closing costs from the "Itemized Fees and Charges" list, the funding fee, and the lender's flat charge.
• However, there is one limitation unique to a VA IRRL: While the borrower may pay any reasonable amount of discount points in cash, no more than two discount points can be included in the loan amount.

For other types of refinances see

VA Home Loan Refinance

VA Cash Out Refinance