VA IRRRL in Tennessee: The VA Interest Rate Reduction Refinance Loan
Who qualifies for a VA streamline refinance, VA's seasoning, rate-drop and 36-month recoupment rules, the 0.5% funding fee, and IRRRL vs. VA cash-out.
Quick answer
A VA IRRRL (Interest Rate Reduction Refinance Loan) refinances an existing VA loan into a new VA loan to lower the rate or move from an adjustable to a fixed rate. It’s often called a VA streamline because it usually needs less paperwork than a full refinance.
The current loan must be seasoned (210 days and six payments), the new loan must pass VA’s net tangible benefit test, and the funding fee is 0.5% unless you’re exempt.
Rules on this page were verified against VA’s website and 38 CFR 36.4306 on October 27, 2026. Program terms and eligibility are subject to VA and lender guidelines and may change.
At a glance: the VA IRRRL in Tennessee
- Who: anyone with a current VA loan on a home they live in or used to live in
- Seasoning: 210 days from the first payment and six payments made
- Rate drop: at least 0.5% fixed-to-fixed, or 2% fixed-to-adjustable
- Costs recouped: within 36 months through lower payments
- Funding fee: 0.5%, waived for veterans receiving VA disability compensation
- Cash out: no; for cash, use a VA cash-out refinance
What is a VA IRRRL?
The Interest Rate Reduction Refinance Loan is VA’s rate and term refinance for loans that are already VA-backed. It pays off your current VA loan with a new one at a lower rate, or moves you from an adjustable rate to a fixed one. It’s one of the refinance options on our refinance page, alongside rate and term, cash-out and debt consolidation refinancing.
Lenders call it a streamline because VA doesn’t require a new appraisal or full credit underwriting on most IRRRLs, and the new loan reuses the entitlement from your original loan. Lenders can still set their own requirements, and most check credit. Program terms are subject to VA and lender guidelines and may change.
Who is eligible for a VA IRRRL?
According to VA, all of these must be true:
- You already have a VA-backed home loan.
- You’re using the IRRRL to refinance that VA loan, not a conventional, FHA or USDA loan. To move a non-VA loan into a VA loan, you’d use a VA cash-out refinance.
- You can certify that you live in the home now or lived in it before. That means a home you’ve moved out of and now rent can still qualify.
If there’s a second mortgage on the home, its holder has to agree to stay in second position behind the new VA loan. Program terms and eligibility are subject to VA and lender guidelines and may change.
What rules does the new loan have to meet?
| Rule | What it means |
|---|---|
| Seasoning | At least 210 days since your first payment on the current loan, and at least six monthly payments made, whichever comes later |
| Fixed rate to fixed rate | The new rate must be at least 0.5% lower than your current rate |
| Fixed rate to adjustable rate | The new rate must be at least 2% lower |
| Recoupment | Fees and closing costs must be recouped through lower monthly payments within 36 months |
| Net tangible benefit | The lender must show the new loan is in your financial interest and give you the test results |
| Discount points | A lower rate can’t come only from points unless they’re paid at closing; financing them is limited |
Source: 38 CFR 36.4306, checked October 27, 2026. Program terms and eligibility are subject to VA and lender guidelines and may change.
These rules exist because of loan churning: lenders refinancing veterans again and again for fees. VA also warns about refinance offers that promise skipped payments or rates that sound too good to be true. A legitimate IRRRL never needs you to miss a payment.
What does a VA IRRRL cost?
- Funding fee: 0.5% of the new loan amount, per VA. Veterans receiving VA disability compensation, and some others, are exempt.
- Closing costs: lender, title and recording fees. VA says they can add up to thousands of dollars.
- How to pay them: VA allows you to include the costs in the new loan, or to take a slightly higher rate so the lender pays them. Either way, the 36-month recoupment rule applies.
VA’s own break-even advice: divide your closing costs by what you expect to save each month to see how long it takes to come out ahead. Program terms are subject to VA and lender guidelines and may change.
Can you take cash out with an IRRRL?
No. An IRRRL only refinances what you owe plus allowed costs. If you want cash from your equity, or to pay off other debts, the VA option is a VA cash-out refinance: up to 100% of your home’s value under VA rules (many lenders cap it at 90%), with a full appraisal and a 2.15% or 3.3% funding fee unless you’re exempt.
| Feature | VA IRRRL | VA cash-out refinance |
|---|---|---|
| Current loan | Must be VA | Any loan type |
| Cash to you | No | Yes |
| Appraisal | Generally not required by VA | Required |
| Funding fee | 0.5% | 2.15% first use, 3.3% after |
| Occupancy | Live in it now or did before | Must live in it |
Sources: VA, IRRRL; VA, Cash-out refinance; VA funding fee, checked October 27, 2026. Program terms and eligibility are subject to VA and lender guidelines and may change.
What could an IRRRL look like on a VA loan in Robertson County?
Say you owe $280,000 on a VA loan you’ve had for two years, and you’re not exempt from the funding fee:
| Item | Amount |
|---|---|
| Current VA loan balance | $280,000 |
| Seasoning (210 days and six payments) | Met |
| VA funding fee (0.5% of the new loan) | About $1,400 |
| New rate requirement (fixed to fixed) | At least 0.5% below the current rate |
| Recoupment | Fees and costs recovered through lower payments within 36 months |
Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs vary by lender and title company and are not shown. Program terms and eligibility are subject to VA and lender guidelines and may change.
How does an IRRRL with Valor Mortgage work?
- Free review. Send me your current mortgage statement. I’ll check seasoning, compare your rate with what wholesale lenders are offering, and run the 36-month recoupment math. No credit pull at this stage.
- Certificate of Eligibility. If you have the COE from your original loan, it helps. If not, I can request it through VA’s lender portal.
- Apply and close. I price your IRRRL with several wholesale lenders, then we close by phone and online from anywhere in Tennessee, with the title company you choose.
If an IRRRL won’t pay for itself before you expect to sell or refinance again, I’ll tell you. See also VA loans in Tennessee.
VA IRRRL FAQ
What is a VA IRRRL?
The Interest Rate Reduction Refinance Loan refinances an existing VA loan into a new VA loan to lower the rate or switch from an adjustable to a fixed rate. It’s called a streamline because VA generally doesn’t require an appraisal or full credit underwriting. Program terms are subject to VA and lender guidelines and may change.
How soon can you do a VA IRRRL?
The new loan can’t be guaranteed until 210 days after your first payment on the current loan and after you’ve made six monthly payments, whichever is later, under 38 CFR 36.4306. Program terms and eligibility are subject to VA and lender guidelines and may change.
Can you do an IRRRL on a home you no longer live in?
Yes. VA only requires that you can certify you live in the home now or lived in it before. A home you’ve moved out of and now rent can still be refinanced with an IRRRL, though lender rules for non-owner-occupied loans may apply. Program terms are subject to VA and lender guidelines and may change.
What is the funding fee on a VA IRRRL?
0.5% of the new loan amount. It can be included in the loan. Veterans receiving VA compensation for a service-connected disability, and some others, don’t pay it. Program terms are subject to VA and lender guidelines and may change.
Does a VA IRRRL require an appraisal?
VA generally doesn’t require one on an IRRRL, which is part of why it’s called a streamline. Some lenders still order one, for example to price the loan. A VA cash-out refinance always needs an appraisal. Program terms are subject to VA and lender guidelines and may change.
Can you get cash back with a VA IRRRL?
No. An IRRRL only refinances your current balance plus allowed costs. To take cash from your equity or pay off other debts, a VA cash-out refinance lets you borrow up to 100% of the home’s value under VA rules, though many lenders cap it at 90%. Program terms are subject to VA and lender guidelines and may change.
Where these figures come from
| Figure | Source | As of |
|---|---|---|
| Eligibility, occupancy certification, second-mortgage rule, costs | VA, Interest rate reduction refinance loan | VA page updated Jan 7, 2026 |
| Seasoning, rate-drop, recoupment, net tangible benefit, points | 38 CFR 36.4306 | Checked Oct 27, 2026 |
| Funding fees 0.5% / 2.15% / 3.3% | VA, Funding fee and closing costs | Checked Oct 27, 2026 |
| VA cash-out refinance | VA, Cash-out refinance | Checked Oct 27, 2026 |
Related guides
- Refinancing with Valor Mortgage: rate and term, cash-out, debt consolidation and VA IRRRL.
- VA loans in Tennessee: entitlement, funding fees and eligibility.
- Cash-out refinance, including VA cash-out.
- WSGI One Street Over, where Christopher talks about VA entitlement.
- About Christopher Armantrout, the licensed originator who wrote this page.
Call me at (615) 671-9178. Send me your current VA mortgage statement and I’ll tell you whether an IRRRL clears VA’s rate-drop and 36-month tests, before anyone pulls your credit.
If it’s after hours, grab a time on my calendar, or start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.