If you have an existing VA loan and want to refinance, two main paths are available: the VA IRRRL or a conventional refinance. For most veterans, the IRRRL wins — here’s exactly how to think through it.
Direct Comparison
| Feature | VA IRRRL | Conventional Refinance |
|---|---|---|
| Appraisal required | Often not required | Almost always required |
| Income documentation | Minimal (non-credit qualifying option available) | Full documentation required |
| Monthly mortgage insurance | None | Required if LTV above 80% |
| Upfront cost | 0.50% VA funding fee (waived for disabled veterans) | No upfront fee, but PMI if LTV > 80% |
| Max cash-out LTV | 90% (via VA cash-out program) | 80% (conventional cash-out) |
| Eligibility | Must have existing VA-guaranteed loan | Any loan type eligible |
| Investment property | Not eligible | Eligible |
| Speed | Faster — streamlined documentation | Standard timeline |
When the VA IRRRL Wins
When the goal is simply a lower monthly payment on an existing VA loan, the IRRRL almost always wins — less paperwork, lower upfront cost, no appraisal risk, no monthly MI. For disabled veterans who pay zero funding fee, the IRRRL is essentially a no-cost refinance in most cases.
When Conventional Makes More Sense
- You’re refinancing an investment property (VA requires primary residence)
- You need to remove a co-borrower who cannot remain on the loan
- Your VA entitlement is tied up and you’re not eligible for a VA refinance
- You have 20%+ equity and want to avoid any upfront fee
Not Sure Which Path Makes More Sense?
At Lendia, we’ll run both scenarios side by side — monthly savings, closing cost recoupment, and total interest over your expected holding period. Get a free comparison today.