A VA loan is a mortgage backed by the United States Department of Veterans’ Affairs, as part of the universally-offered package of Veteran benefits. Other benefits include low-cost medical care, education compensation, and disability assistance. In the case of mortgage refinance, the process is meant allow qualified borrowers to alter their loan term and, hopefully, their interest rate. This can be for the purpose of switching from a variable to a fixed rate, or to gain a general decrease. Typically, this is done by replacing an existing mortgage with a new one with more favorable conditions. 

VA mortgage refinance, while intended for the same goals, is achieved via a slightly different process. The VA Interest Rate Reduction Refinance Loan (IRRRL), rather than generating a new mortgage, alters the existing one. As opposed the original VA loan, an IRRRL can be granted without claiming primary residence, or requiring a certificate of eligibility. IRRRL services are offered by way of licensed lenders. In 2016, there were 303 such entities. 

Regardless of an applicant’s income and credit history, every qualified veteran is entitled to at least $36,000 without a down payment. Though there is no official loan cap, veterans are usually granted an amount up to four times their allotted entitlement. That said, IRRRL recipients may only use resultant funds for their stated interest-reduction purpose. This means that no cash may be received, and it cannot be used to pay off other loans. 

Not having to pay between 1.25% and 1.75% of the loan’s total in extenuating fees means that veterans are not required to pay out-of-pocket when undergoing the application process. The exception to this is the VA funding fee, a variant of the typical closing cost. This helps to subsidize the VA’s loan guarantee benefit, and is calculated based on loan type, loan term, and whether the applicant is a first-timer. Exceptions are offered, however, to those who are receiving, or are entitled to receive, disability-related benefits. Below we've chosen the best VA loan providers for refinancing. 

Top 4 VA Mortgage Refinance

Our Partner
9.8 / 10
  • Low mortgage rates
  • No points and no hidden fees
  • No closing cost options available
  • Named by LendingTree as top customer-rated in 1Q17
  • A+ Rating with the Better Business Bureau
  • Wide variety of mortgage refinance options including cash-out and debt consolidation
  • Not available in NY, NV, and HI


Our Partner
9.7 / 10
  • A+ Rating with the BBB
  • Industry-Leading Online Refinance Tools
  • Award Winning Client Service
  • Multiple Loan & Refinance Options to Fit Your Needs
  • Fortune 100 Best Companies to Work For 2017
  • Highest in Customer Satisfaction in the U.S.
  • Live Chat Available
  • Proud Supporter of College Athletics
Our Partner
9.0 / 10
  • Close Loans in as Few as 21 Days.
  • Secure lower interest rates and reduce monthly payments
  • Modify your loan term
  • Consolidate multiple debts into one easy-to-manage loan
  • Get pre-qualified online
  • Mortgage Banker Association Member
  • Equal Housing Opportunity Lender
  • Multiple Refinance Programs to Choose From
Our Partner
8.5 / 10
  • Easy Online Refi Calculator
  • Historically Low Interest Rates
  • Talk to a Licensed Mortgage Banker If You Prefer Phone
  • Cash-out & Debt Consolidation Options
  • Convenient in-home document signing & No Closing Cost Options Available!
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