HOUSINGVA program
VA Interest Rate Reduction Refinance Loan (IRRRL)
Refinance of an existing VA-backed home loan to get a lower interest rate, or to move from an adjustable or variable rate to a fixed one. You go through a private lender, and closing costs can add up to thousands of dollars.
Available to veterans with an existing VA-guaranteed home loan
Step-by-step guide
What you get
A refinance of your current VA-backed loan to a lower interest rate, or from an adjustable rate to a fixed rate.
What VA and your lender look for: a VA loan you have now
- A VA-backed loan on the same homeYou already have a VA-backed loan, and the IRRRL refinances that loan on the same home. If there is a second mortgage, its holder must agree to make the new VA loan the first mortgage.
- You live in the home now, or used toYou certify that you live in the home or lived in it before. If active duty kept you away, your spouse can certify that they live or lived there.
- A new loan that helps youThe new loan has a lower monthly principal and interest payment, a shorter term, or a fixed rate in place of a VA adjustable rate. A higher payment is allowed only for energy efficient improvements, or when VA approves the loan in advance as needed to prevent a foreclosure that is about to happen and you meet VA’s credit standards.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab); 38 CFR 36.4307(a) (opens in new tab)
Which situation fits?
- Refinance the VA loan you have now
An IRRRL replaces your current VA-backed loan with a new one on the same home. You get it from a private bank, mortgage company, or credit union, not from VA.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab); 38 CFR 36.4307(a) (opens in new tab); VA.gov: VA home loan types (opens in new tab)
- If your current loan is behind
When a payment is more than 30 days past due, VA backs an IRRRL only if VA approves it in advance. The lender sends VA what it needs.
- VA approval before the loan closesThrough the lender, you give the reasons payments were missed and show that the cause has been fixed. You also meet VA’s credit standards. Past due payments and allowed late charges can be part of the new loan.
Source: 38 CFR 36.4307(a) (opens in new tab); VA.gov: VA help to avoid foreclosure (opens in new tab); 38 CFR 36.4340 (opens in new tab)
What to gather, and what it shows VA
| Document | What it shows | How VA gets it | Have it? |
|---|---|---|---|
| The COE from your current loan The COE you used to get your current VA-backed loan. | Your current VA loan and the benefit it uses | Give it to your lender. If you do not have it, the lender can get your COE electronically through VA’s system. | Yes |
| COE request (VA Form 26-1880), if needed The VA form for a COE. It has a box for an interest rate reduction refinance and lists your past VA loans. | The VA loan you want to refinance | If you do not have your COE, the lender can get it electronically instead. If you mail the form, send it to the regional loan center on the last page. | |
| Occupancy certification A statement you sign, in the form VA requires, that you live in the home or lived in it before. | That the home is or was your home | You sign it in the form VA requires, as part of the new loan. It goes to the lender, not to BeneVets. | |
| Second mortgage holder’s agreement If the home has a second mortgage, a written agreement from its holder to let the new VA loan be the first mortgage. | That the new VA loan will be first in line | Your lender asks the second mortgage holder for it. | |
| The terms of your current loan and the new one The monthly principal and interest payment, the term, and the rate type on the loan you have now and on the new loan a lender offers. | That the new loan lowers the payment, shortens the term, or replaces a VA adjustable rate with a fixed rate | Terms and fees vary, so compare offers from several lenders. Your lender can advise you on the costs and benefits of the refinance. | |
| Credit and hardship information, if behind Your reasons for the missed payments, information that the cause has been fixed, and the credit and income records VA’s standards call for. | That the cause of the missed payments is fixed | Give it to your lender, which sends it to VA for approval in advance. |
Papers go to your lender, which deals with VA. BeneVets does not ask for copies of them.
Steps, in order
- Check whether it pays
Closing costs can add up to thousands of dollars. Before you decide, divide your closing costs by how much you expect to save each month to see if the refinance is worth it.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab)
- Watch for misleading offers
Be careful with refinance offers that say you can skip payments or get a very low rate. Terms that sound too good to be true may be a sign of a misleading offer.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab)
- Compare several lenders
Go to a private bank, mortgage company, or credit union. Terms and fees vary, so contact several lenders.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab)
- Give the lender your COE
Take the COE from your original VA loan to the lender. If you do not have it, ask the lender to get it electronically.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab)
- If you are behind, expect VA review first
With a payment more than 30 days past due, the lender asks VA to approve the IRRRL before it closes. Give the lender your reasons for the missed payments and what has changed.
- Close and pay the costs
Follow the lender’s closing process. Pay the funding fee unless an exemption applies, such as receiving VA compensation. You can include the costs in the new loan.
Source: VA.gov: interest rate reduction refinance loan (opens in new tab); VA.gov: VA funding fee and closing costs (opens in new tab); 38 CFR 36.4313(e)(5) (opens in new tab)
- Get free help
Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you. A VSO can help with a COE request; the refinance itself runs through your lender. VA home loan representatives answer questions at 877-827-3702 (TTY: 711).
Source: VA.gov: accredited representatives (opens in new tab); 38 CFR 14.627(h) (opens in new tab); VA.gov: how to request a VA home loan COE (opens in new tab)
Good to know
An IRRRL uses the home loan benefit already tied to the loan you are refinancing. Your remaining benefit is not charged.
The VA funding fee on an IRRRL is 0.5% of the loan, on the chart effective April 7, 2023. There is no fee if you receive VA compensation for a service-connected disability. You can add the costs to the new loan, or you may be able to take a rate high enough that the lender pays them.
Source: VA.gov: VA funding fee and closing costs (opens in new tab); VA.gov: interest rate reduction refinance loan (opens in new tab); 38 CFR 36.4313(e)(5) (opens in new tab)
An unmarried surviving spouse who signed the existing VA loan with the veteran can refinance it with an IRRRL.
BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you
Sources checked October 7, 2026: 38 CFR 14.627(h) (opens in new tab), 38 CFR 36.4302(l)(2) (opens in new tab), 38 CFR 36.4307(a) (opens in new tab), 38 CFR 36.4307(b) (opens in new tab), 38 CFR 36.4313(e)(5) (opens in new tab), 38 CFR 36.4340 (opens in new tab), VA.gov: interest rate reduction refinance loan (opens in new tab), VA.gov: cash-out refinance loan (opens in new tab), VA.gov: how to request a VA home loan COE (opens in new tab), VA.gov: VA funding fee and closing costs (opens in new tab), VA.gov: VA help to avoid foreclosure (opens in new tab), VA.gov: VA home loan types (opens in new tab), VA.gov: accredited representatives (opens in new tab), VA Form 26-1880 (opens in new tab)