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A VA streamline refinance, also known as an IRRRL, allows US military veterans and service members to lower their rate and payment. It also requires very little documentation. In addition, an IRRRL can work as a VA energy efficient mortgage and pay for energy efficient improvements while you refinance.
VA streamline refinance rules limit what the new loan amount can cover. It can only include the existing loan balance, closing costs, up to two discount points and the 0.5% VA funding fee. But there is one exception. The homeowner can add the cost of improving the efficiency of their home, which can lower utility costs over time.
The IRRRL applicant may finance energy efficient improvements up to $6,000 and roll that amount directly into the loan. For costs above $3,000, the lender must find that the payment increase won’t exceed the likely drop in utility costs.
Check your VA home loan eligibility. Start here (Nov 7th, 2026)
Improvements a VA Energy Efficient Mortgage Can Cover
You can wrap the costs of these improvements into your VA streamline refinance:
- Insulation
- Storm or thermal windows and doors
- Clock (programmable) thermostats
- Caulking
- Weather-stripping
- New HVAC units or heat pumps
Even solar heating systems and solar components qualify.
When a lower VA rate is available, many homeowners are able to reduce their payment and finance efficiency upgrades. As a result, they may lower their homeownership costs all around.
Energy Efficient Improvement Reimbursement with a VA Streamline
Have you already done the improvements and need reimbursed? The VA streamline also pays you back for qualifying efficient improvements. To qualify, you must close your VA streamline within 90 days of completing the work.
Keep your receipts for proof of materials and labor you have already paid for.
Completing Energy Efficient Improvements Yourself
Some homeowners are skilled at home improvement. You may be able to adequately install the energy-efficient improvements yourself. In that case, you can still use a VA streamline to pay for them.
Just keep in mind that you can only finance documented costs, such as the materials you buy. The estimated value of your own labor can’t be included in the costs.
Whether you will do the work yourself, or hire a qualified contractor, you must document the costs for each improvement.
Apply for a VA Energy Efficient Mortgage
This is such an appealing feature of a streamline refinance. It’s hard to understand why its popularity hasn’t gained more traction. It’s still a very niche loan offering. In fact, some loan officers aren’t even aware of its existence. As a result, find an experienced VA loan officer here who knows the ins and outs of this beneficial loan type.
See if you could qualify to lower your VA loan interest rate and payment. At the same time, you could make your home more energy efficient.
Check your VA home loan eligibility. Start here (Nov 7th, 2026)
