VA IRRRL: Streamline Refinance for Nevada Veterans

VA IRRRL (Interest Rate Reduction Refinance Loan): Designed solely to lower your interest rate or change from an adjustable-rate to a fixed-rate mortgage. You cannot take cash out. It has streamlined requirements (no appraisal, no income verification in most cases) and faster processing.

VA cash-out refinance: Allows you to tap into your Nevada home's equity and receive cash at closing. It requires a full appraisal, income verification, credit underwriting, and takes longer to close. Use this if you need funds for home improvements, debt consolidation, or other expenses.

Bottom line: If you only want to lower your rate and payment, choose IRRRL for speed and simplicity. If you need cash out, choose VA cash-out refinance.

Yes, but it's much lower than the original VA funding fee. The IRRRL funding fee is only 0.5% of the loan amount (compared to 2.15-3.3% for purchase loans).

For example, on a $350,000 IRRRL in Las Vegas, the funding fee would be $1,750 (compared to $7,525-$11,550 for a purchase).

Good news: You can finance this fee into the new loan, so you don't pay out of pocket. And if you have a VA disability rating of 10% or higher, you're exempt from the IRRRL funding fee entirely.

Disabled Nevada veterans: Bring your VA disability award letter to qualify for the exemption and save thousands.

Yes! You can refinance your Nevada VA loan with IRRRL even if you no longer occupy the property. You only need to certify that you previously occupied it as your primary residence.

This is common for veterans who:

• Received PCS orders and moved to another state
• Turned their Nevada home into a rental property
• Relocated for civilian employment
• Are temporarily stationed elsewhere but plan to return

Many Nevada veterans use IRRRL to lower the payment on their rental properties in Las Vegas or Reno, even while living elsewhere. The lower payment means better rental income cash flow.

VA guidelines require you to have made at least 6 consecutive monthly payments on your existing VA loan and 210 days must have passed since the first payment.

Additionally, you must be current on your mortgage with no late payments in the past 6 months.

Example: If you closed on your Nevada home on January 1st with a first payment due February 1st, you could apply for IRRRL as early as late July (after 6 payments and 210 days).

However, remember to consider your break-even point. Even though you're eligible at 6 months, it only makes financial sense if interest rates have dropped enough to justify the closing costs.

IRRRL closing costs are typically $2,000-$5,000 in Nevada, which includes:

• VA funding fee: 0.5% of loan amount ($1,750 on a $350k loan)
• Title insurance: Typically required in Nevada ($800-$1,500)
• Recording fees: Nevada county recording charges ($100-$300)
• Lender fees: Processing, underwriting, origination (varies by lender)
• Credit report: Usually $30-$50

What you typically DON'T pay:

• Appraisal (not required for most IRRRLs) - saves $500-$700
• Home inspection
• Pest inspection

Rolling costs into the loan: Most Nevada veterans finance these closing costs into the new loan amount, so you pay nothing out of pocket. You can also use the mortgage payment "skip" (explained below) to cover costs.

One of the best IRRRL benefits: you typically skip 1-2 months of mortgage payments during the refinance process, which can help offset closing costs.

Here's how it works:

When you refinance, you pay off your existing mortgage mid-month. Your old lender will charge you interest only up to the payoff date. Your new loan's first payment won't be due until about 45 days after closing.

Example for a Las Vegas veteran:

• You close your IRRRL on January 15th
• Your old January payment (due Jan 1st) was already paid
• You won't owe a February payment on the old loan (it's paid off)
• Your first new payment isn't due until March 1st
• Result: You skip February's payment entirely

If your monthly payment is $2,000, this "skip" essentially provides $2,000 toward your closing costs. Many Nevada veterans time their IRRRL closing to maximize this benefit and pay nothing out of pocket.