A VA IRRRL (Interest Rate Reduction Refinance Loan) is a streamlined refinance for veterans with an existing VA loan. It lets you lower your rate with minimal paperwork, no appraisal, and no income verification. The funding fee is only 0.5%.
No, a VA IRRRL does not require an appraisal in most cases. The VA waives this requirement because the property was already appraised for the original VA loan, simplifying and speeding up the process.
The VA funding fee for an IRRRL is only 0.5% of the new loan amount, much lower than a VA purchase loan. It can be financed into the loan. Veterans with service-connected disabilities are exempt.
You must wait at least 210 days from closing and have made at least 6 monthly payments. The refinance must also provide a net tangible benefit, typically a 5% or greater reduction in your combined monthly payment.