Often it is legal marketing, but it is not from the VA. The VA and the CFPB have warned that unsolicited refinance offers can look official and promise too much. Check any offer against your current loan: rate, payment, total costs and how long it takes to recover the costs.
In a joint warning, the CFPB and VA said veterans with VA loans are likely to receive unsolicited refinance offers that appear official and may sound too good to be true. Some lenders use aggressive and potentially misleading advertising and sales tactics.
VA prohibits a lender from advertising the skipping of payments as a way to get cash in an IRRRL. The IRRRL's proceeds can only be used to pay off the existing VA loan and the costs of getting the IRRRL, so promises of cash back deserve scrutiny.
The IRRRL has a built in test. The lender must show how long it will take to recoup all closing costs through the lower payment. VA's circular sets a recoupment limit of 36 months for fees, expenses and closing costs net of any lender credit, with specific rules for how it is calculated.
Claims in a refinance letter and what to check
| What the letter says | What to check |
|---|---|
| Skip one or two payments | VA prohibits advertising skipped payments as a way to get cash in an IRRRL |
| Cash back | IRRRL proceeds can only pay off the VA loan and the costs of the new loan |
| No cost refinance | Ask for a Loan Estimate and compare total costs and the new loan balance |
| Act now | Pressure to refinance a month or two after you closed is a warning sign |
What to do
- Do not call back a number on the letter before you compare.
- Get a Loan Estimate and compare it with your current loan.
- Ask for the recoupment calculation in writing.
- Call the VA at the number on va.gov if you want an independent view.
- Report misleading offers to the CFPB.
General information, not legal or tax advice. Confirm with your title company or attorney.
Sources
- CFPB and VA, VA refinancing offers that sound too good to be true. Joint warning; skipped payments advertising prohibited. Source type: Official. Checked October 17, 2026.
- VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Refinancing Loans. IRRRL proceeds limited to payoff and costs; recoupment statement. Source type: Official. Checked October 17, 2026.
- VA Circular 26-19-22, Exhibit B. 36 month recoupment calculation. Source type: Official. Checked October 17, 2026.