FHA streamline refinance and VA IRRRL
If you already have an FHA or VA loan, a streamline refinance can lower your rate with less paperwork and often no appraisal. FHA calls it a streamline refinance and VA calls it an Interest Rate Reduction Refinance Loan (IRRRL).
FHA streamline
- At least 210 days since closing and at least six payments made on your current FHA loan.
- Must give you a net tangible benefit, such as a lower combined rate including mortgage insurance, a shorter term, or a switch from adjustable to fixed.
- You can take out no more than $500 in cash.
VA IRRRL
- Refinances an existing VA backed loan into a new VA backed loan.
- You must certify that you live in the home now or used to live there.
- The VA funding fee for an IRRRL is 0.5%, unless you are exempt, and it can be included in the new loan.
Questions people ask
- Can I get cash out with a streamline?
- No. FHA allows up to $500 back at closing. For more cash, look at an FHA or VA cash-out refinance instead.
- Who is exempt from the VA funding fee?
- Among others, veterans receiving VA compensation for a service connected disability, and certain surviving spouses. The VA page lists every exemption.
- Can a non permanent resident do an FHA streamline?
- Since May 25, 2025, FHA loans, including streamline refinances, are limited to U.S. citizens and lawful permanent residents under HUD Mortgagee Letter 2025-09.
Official sources
- FDIC Affordable Mortgage Lending Guide, FHA streamline refinance ↗
- VA, Interest rate reduction refinance loan (IRRRL) ↗
- VA, Funding fee and closing costs ↗
- HUD Mortgagee Letter 2025-09, FHA residency requirements ↗
Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.