source:
  type: guide
  id: va-m26-7-ch06-t04
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 4 — Quick Reference
    Table for IRRRLs Versus Cash-Out
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 4 — Quick
    Reference Table for IRRRLs Versus Cash-Out.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch06-t04-full
  canonical_id: va-m26-7-ch06-t04-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 4 — Quick Reference
    Table for IRRRLs Versus Cash-Out
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 4 — Quick
      Reference Table for IRRRLs Versus Cash-Out
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: e9c94ae5dc0a61f0
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:3cffeec90efad00b76c2984956a10f10bd9f0b99880c94bd3c269192cfe674f5
    paragraph_quote: '4. Quick Reference Table for IRRRLs Versus Cash-Out Refinancing
      Loans Change Date April 10, 2009, Change 11 • This section has been updated
      to remove references to a 90 percent limit and a maximum guaranty on refinance
      loans, and to make minor grammatical edits. a. Table IRRRL versus Cash-out The
      following table provides a quick reference for IRRRL loans versus cash- out
      refinancing loans: Feature IRRRL Cash-out Refinancing Purpose To refinance an
      existing VA loan at a lower interest rate To pay off lien(s) of any type - can
      also provide cash to borrower Interest Rate Rate must be lower than on existing
      VA loan (unless existing loan is an ARM) Any negotiated rate Monthly Payment
      Amount Payment must be lower than that on an existing VA loan (unless the ARM
      is being refinanced, a term is shortened, or energy efficiency improvements
      are being included) No requirement Discount Points Reasonable points can be
      paid - only two of these points can be included in the loan amount Reasonable
      points can be paid - if paid from loan proceeds Maximum Loan Existing VA loan
      balance, plus allowable fees and charges, plus up to two discount points, plus
      the cost of any energy efficiency improvements, plus the VA funding fee 100
      percent of the reasonable value of the property indicated on the NOV, plus the
      cost of any energy efficiency improvements, plus the VA funding fee Maximum
      Guaranty Guaranty is at least 25 percent in all cases (See section 1, subsection
      h of this chapter) Maximum guaranty is the same as for purchases Continued on
      next page VA Pamphlet 26-7, Revised Chapter 6: Refinancing Loans 6-20 4. Quick
      Reference Table for IRRRLs Versus Cash-Out Refinancing Loans, Continued a. Table
      IRRRL versus Cash-out (continued) Feature IRRRL Cash-out Refinancing Entitlement
      Veteran re-uses the entitlement used on the existing VA loan - the IRRRL does
      not impact the amount of entitlement the veteran has in use Must have sufficient
      available entitlement - if existing VA loan on the same property is being refinanced,
      entitlement can be restored for the refinance Fees and Charges in the Loan All
      allowable fees and charges, including up to two discount points, may be included
      in the loan Allowable fees and charges and points may be paid from the loan
      proceeds Cash to Borrower Not permitted Borrower can receive cash for any purposes
      acceptable to the lender Lien/Owner- ship Must be secured by first lien - veteran
      must own property Must be secured by first lien - veteran must own property
      Refinance of Other Liens Cannot refinance other liens - can only refinance the
      existing VA loan Can refinance any type of lien(s) Maximum Loan Term Existing
      VA loan term plus 10 years, not to exceed 30 years + 32 days 30 years + 32 days
      Occupancy Veteran or spouse of an active duty servicemember must certify to
      prior occupancy Veteran or spouse of an active duty servicemember must certify
      as to intent to occupy Appraisal No appraisal is required Appraisal is required
      Credit Underwriting No underwriting is required except in certain cases Full
      credit information and underwriting are always required Automatic Authority
      All lenders can close IRRRLs automatically, except if the loan being refinanced
      loan is 30 days or more past due, prior approval is always required Only lenders
      with automatic authority can close these loans automatically Law 38 U.S.C. 3710(a)(8)
      38 U.S.C. 3710(a)(5) VA Pamphlet 26-7, Revised Chapter 6: Refinancing Loans
      6-21'
  judgment: false
