IRRRL is short for Interest Rate Reduction Refinance Loan. It’s a refinance option specifically to lower your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

If you are a Veteran or active duty military and interested in refinancing your home loan, here’s a closer look at the IRRRL refinance option. It’s always a good idea to see the facts and understand the ins and outs of the option so you can make the best decision for your particular situation.

The Facts of an IRRRL :

• No appraisal or credit underwriting package is required when applying for an IRRRL
• An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs
• When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase
• No lender is required to give you an IRRRL, however, any VA lender may process your application for an IRRRL
• You may NOT receive any cash from the loan proceeds


•A Certificate of Eligibility (COE) is not required. But if you have your Certificate of Eligibility, provide it to your lender to show the prior use of your entitlement
•No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage
•You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan
•The occupancy requirement for an IRRRL is different from other VA loans. For an IRRRL you only need proof that you previously occupied the home

If you have any questions and would like to speak with one of our VA Loan Specialists about the IRRRL refinancing option, please contact us at 844-MDM-4YOU