VA IRRRL & FHA Streamline Refinance 2027 Calculator

VA IRRRL: Veteran Streamline

VA IRRRL (Interest Rate Reduction Refinance Loan) is exclusively for existing VA loan borrowers refinancing to a lower rate. No appraisal required. No income verification or DTI check. Funding fee is just 0.5% of the new loan amount (vs 2.15-3.3% for a new VA purchase). Veterans receiving VA disability compensation are exempt from the funding fee. Closing typically takes 30-45 days vs 45-60 for traditional refi.

FHA Streamline: Less Paperwork

FHA Streamline allows existing FHA loan borrowers to refinance to a lower rate without appraisal, income verification, or credit-check rerun (with the lender of record). Upfront MIP (UFMIP) is 1.75% rolled into the new balance. Annual MIP continues at 0.55% (depending on LTV at original purchase). For FHA borrowers with rate over 6%, current 5% market makes FHA Streamline a no-brainer if planning to stay 2+ years.

Net Tangible Benefit Required

VA and FHA both require Net Tangible Benefit (NTB) — a meaningful rate reduction (typically 0.5% or more) and reasonable break-even period. The lender certifies NTB at application. Refinances with negligible savings or extending term unnecessarily are blocked. This protects veterans and FHA borrowers from refi churn that benefits the lender at borrower expense.

Watch the Funding Fee + Term Reset

Refi reset extends the term and adds funding fee — both reduce actual savings. A 25-year remaining loan refi'd to a new 30-year stretches payoff. Better: refi to a 20-year fixed if you can afford the slightly higher payment, locking in the rate cut without resetting amortization. Many borrowers focus only on monthly savings and miss the lifetime cost of the term extension.

Sources: va.gov IRRRL 2026, hud.gov FHA Streamline guide. Last updated: May 2026.