A VA IRRRL stands for Interest Rate Reduction Refinance Loan, also known as a VA streamline loan. VA IRRRLs requires you to have a VA guaranteed loan to lower your rate or refinance your ARM (adjustable-rate mortgage) to a fixed rate loan.
These loans are extremely easy. Typically, they do not require an appraisal. Very little underwriting documentation is required. Usually only the following is required to close your loan: job verification, copy of the COE (certificate of eligibility), your loan must be 6 months old or 210 days since last transaction. VA does not require a credit check, but most lenders want to see it to make sure you haven't been 30 days late in the last 12 months, but in some cases, they will allow for one. Sometimes lenders will ask for a copy of the note from the last closing.
VA IRRRLs will allow for you to roll in closing costs up to certain amounts. If you are required to pay a VA funding fee it is only .5% on an IRRRL.
Key to IRRRLs is the lender should always make sure it is a benefit to the veteran. Some lenders can take advantage of veterans by charging a lot of fees and if the fees seem extreme you may want to talk to another lender to get another opinion.