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Interest Rate Reduction Refinance Loan (IRRRL)
Managing AgencyVeterans Benefits Administration (VBA)http://benefits.va.gov/benefits/
Program DescriptionA Veterans Administration (VA) interest rate reduction refinance loan (IRRRL) can be used to refinance an existing VA loan to lower the interest rate and payment.
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.
General Program RequirementsPersons who may qualify for this refinance loan include:
- Eligible Veterans,
- Active duty Servicemembers,
- Current Reserve and National Guard members (usually after 6 years of reserve service), or
- Certain surviving spouses
Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration are considered to be active duty members and Veterans, once discharged.
Length-of-service requirements apply in most cases.
Generally, in order to receive VA benefits and services the Veteran/Servicemember's character of discharge or service must be under other than dishonorable conditions (e.g., honorable, under honorable conditions, general). However, Reserve and National Guards members must have an honorable discharge. Sometimes, Veterans/Servicemembers receiving undesirable, bad conduct, and other types of dishonorable discharges may qualify for VA benefits depending on a determination made by VA.
Loan TermsVeterans 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 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 Servicemember must certify their intent to occupy the property. VA does not require an appraisal to refinance a loan.
Your Next StepsThe following information will lead you to the next steps to apply for this benefit.
To apply, you will need a valid Certificate of Eligibility (COE). There are several ways to obtain your COE:
- You may be able to obtain a COE online through eBenefits.
- If you are unable to obtain your COE through eBenefits, check with your lender. In most cases, your lender will be able to obtain a COE for you using the Automated Certificate of Eligibility (ACE) program.
For more information on this program, please visit the Home Loans webpage
Program Contact Information
If you have questions:
- Visit the Inquiry Routing and Information System (IRIS) website to search Frequently Asked Questions or ask a question on-line.
- Please contact a Regional Loan Center if you have detailed questions.
To apply for additional Veterans' benefits and view your benefit status, open an eBenefits Premium account. eBenefits is a one-stop source for information on Department of Defense and Department of Veterans Affairs benefits and services. With a free Premium level eBenefits account, Veterans and Servicemembers can conduct self-service transactions such as checking claim status information, GI Bill enrollment, and obtaining copies of civil service preference letters, DD214, and other personal information. For further information and to register for a free Premium level account, visit the eBenefits website.