VA IRRRL Process

How does the VA IRRRL process work?

The process starts by reviewing the existing VA-backed mortgage and the borrower’s goal. The lender then checks IRRRL eligibility, seasoning and benefit requirements, presents pricing and costs, completes required lender documentation, issues disclosures and prepares the new VA-backed loan for closing.

Step 1: Review the current VA loan

Gather the mortgage statement, current interest rate, principal balance, principal-and-interest payment and loan type. If available, keep the prior closing disclosure or note nearby.

Step 2: Define the refinance goal

Common goals include reducing the rate or payment or moving from an ARM to fixed financing. If the goal is equity cash-out, an IRRRL is generally not the right program.

Step 3: Check eligibility and timing

The lender confirms the existing VA loan and reviews eligibility, seasoning and applicable lender overlays.

Step 4: Compare pricing

Compare the rate, points, lender credits, closing costs, funding fee treatment, new balance and monthly payment.

Step 5: Test the benefit

Confirm the applicable Net Tangible Benefit and calculate personal break-even.

Step 6: Complete lender documentation

IRRRLs are streamlined, but lenders can still request documentation needed for their process and overlays.

Step 7: Review final disclosures and close

Before signing, compare the final rate, balance, payment and cash-to-close with the structure you selected. Keep the new loan documents for future reference.

Return to the VA IRRRL master guide or begin an application.

General process overview only. Exact steps vary by lender and transaction. 360 Mortgage Inc. NMLS ID 80777.