VA's two cash-out refinance types and the protections each one carries
Type I vs IRRRL
Classification
Both can refinance a loan without taking cash, but they are different programs. An IRRRL refinances an existing VA loan with streamlined rules, while a Type I cash-out can refinance a non-VA loan into VA and needs full underwriting and an appraisal. Your current loan type often decides which one fits.
Last reviewed against the primary sources listed below.
Compare
| IRRRL | Type I cash-out | |
|---|---|---|
| Current loan | VA only | VA or non-VA |
| Appraisal | Often not required | Required |
| Underwriting | Streamlined | Full |
Type questions
Can I use an IRRRL on a conventional loan?
No. IRRRLs are only for existing VA loans.
Is a Type I cash-out the same as an IRRRL?
No. They are separate programs with different rules.