Interest Rate Reduction Refinance Loan (IRRRL)

A Department of Veterans Affairs (VA) Interest Rate Reduction Refinance Loan (IRRRL) can be used to refinance an existing VA loan to lower the interest rate.

IRRRLs do not require credit underwriting and may include the entire outstanding balance of the prior loan, to include closing costs and up to two discount points. Please note that some lenders may require additional credit requirements for loan approval. Therefore, VA encourages you to contact multiple lenders to determine the best loan option to fit your needs.

Persons who may qualify for this refinance loan include:

• Veterans,
• Reserve and National Guard members (called to active duty),
• Active duty service members
• Current Reserve and National Guard members (after six years of creditable service), and
• Certain surviving spouses.

To be eligible, the Veteran/service member must have been discharged under conditions other than dishonorable and meet length of service requirements.

As a requirement for a VA home loan, the Veteran, the Veteran's spouse, or dependent child must certify occupancy for the property.

Veterans can negotiate the interest rate with the lender on all loan types. A VA funding fee must be paid unless the Veteran is exempt due to receipt of disability compensation. The funding fee can be paid in cash or rolled into the loan. The Veteran, the spouse or the child of an active duty service member must certify their intent to occupy the property. VA does not require an appraisal to refinance an IRRRL.

If you have questions:

• Visit the Ask VA (AVA) webpage to ask a question electronically.
• Please contact a Regional Loan Center if you have detailed questions.