Program Description

A Department of Veterans Administration (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.

General Program Requirements

Persons 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

To be eligible, the Veteran/Servicemember 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 Veterans' spouse, or dependent child must certify occupancy for the property.

Loan Terms

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 Servicemember must certify their intent to occupy the property. VA does not require an appraisal to refinance a loan.

Your Next Steps

The following information will lead you to the next steps to apply for this program.

Application Process

For more information on this program, please visit the Home Loans webpage.

Program Contact Information

If you have questions:

To apply for additional benefits and view your benefit status, open an eBenefits Premium account. eBenefits is a one-stop source for information on VA benefits and services. With a free Premium level eBenefits account, Veterans, Servicemembers and their family members can conduct self-service transactions such as checking claim status information, GI Bill enrollment, and obtaining copies of civil service preference letters, DD Form 214, and other personal information. For further information and to register for a free Premium level account, visit the eBenefits website.