Short answerAn IRRRL (VA Streamline) lowers the rate or payment on an existing VA loan with less paperwork and a 0.50% funding fee. A VA cash-out refinance can replace any loan type and let you take equity out, with a 2.15% (first use) or 3.30% (subsequent) funding fee.
Side by side
| IRRRL (Streamline) | Cash-out refinance | |
|---|---|---|
| Current loan must be VA | Yes | No — any loan type |
| Cash out | No | Yes |
| Funding fee | 0.50% | 2.15% / 3.30% |
| Appraisal | Usually not required by VA | Required |
| Occupancy | Must have lived there before | Must live there now |
IRRRL rules to know
- Seasoning: at least 210 days since your first payment and 6 payments made.
- Net tangible benefit: the new loan has to help you — typically a lower rate (at least 0.50% lower when going fixed to fixed), or a move from an adjustable to a fixed rate.
- Recoupment: closing costs generally have to be recouped through savings within 36 months.
When cash-out makes sense
Paying off high-interest debt, home improvements, or moving a conventional or FHA loan into a VA loan to drop mortgage insurance. We'll run the numbers both ways so you can see the real savings.
Common questions
Can I do an IRRRL on a home I now rent out?
Yes. An IRRRL only requires that you previously lived in the home.
Do I need an appraisal for a VA Streamline?
VA doesn't generally require one for an IRRRL, though some lenders may.
Is the funding fee waived on a refinance?
Yes, if you receive VA disability compensation — the same exemptions apply.
See your real numbers
Our free calculator uses 2026 pay tables, BAH by ZIP and VA residual income standards. About 2 minutes, no credit pull.
Educational information only, not a commitment to lend or a loan approval. VA guidelines and lender requirements change; your eligibility and terms depend on your full application, credit, income and VA entitlement.