Interest Rate Reduction Refinance Loan

If you have an existing VA-backed home loan and you want to reduce your monthly mortgage payments—or make your payments more stable—an interest rate reduction refinance loan (IRRRL) may be right for you. Refinancing lets you replace your current loan with a new one under different terms. Find out if you’re eligible—and how to apply.

You might be eligible for a VA loan by fulfilling one or more of the following requirements:

  • You have served 90 consecutive days of combat duty during wartime, OR 
  • ​You have served 181 days of military service during peacetime, OR
  • You have spent 6 years in the Coast guard or Reserves, OR
  • ​You are the spouse of a member of the military who died on deployment or as a result of service related disability.

Don't meet the requirements? You may still still qualify. Talk with a VA Specialist today

Certificate of Eligibility

Although you do NOT need your Eligibility Certificate (COE) in hand to apply for a VA loan, this is an important aspect of the eligibility for VA loans. Your COE confirms that you qualify for VA loan benefits to the lender.


Again, before applying for a VA loan, it is not necessary to acquire your COE, as most VA lenders are able to pull their COE instantly via the automated system. In fact, almost all VA loan COEs are electronically issued, and about two-thirds of certification are given instantly, according to the VA.

There are three ways you can receive your COE for a VA loan:

  • Applying through a VA approved lender
  • Applying online through the VA’s eBenefits portal
  • Applying by mail with VA Form 26-1880

Am I eligible for an IRRRL?

You may be eligible for an IRRRL if you meet all of the requirements listed below.

  • Already have a VA-backed home loan, and
  • Are using the IRRRL to refinance your existing VA-backed home loan, and
  • Can certify that you currently live in or used to live in the home covered by the loan
  • Note: If you have a second mortgage on the home, the holder must agree to make your new VA-backed loan the first mortgage.

Don't meet the requirements? You may still still qualify. Talk with a VA Specialist today

Why might I want to get an IRRRL?

On a no-down-payment loan, you can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment.

Learn about VA home loan limits

You’ll want to keep closing costs in mind when refinancing a loan, as they can add up to thousands of dollars. Before you decide to refinance, divide your closing costs by how much you expect to save every month by refinancing to see if it’s worth it. While your lender can advise you on the costs and benefits of the transaction, you’ll want to be sure you understand what you’re getting into.

Often called a “streamline” refinance, an IRRRL may help you to: 

  • Lower your monthly mortgage payment by getting you a lower interest rate, or
  • Make your monthly payments more stable by moving from a loan with an adjustable or variable interest rate (an interest rate that changes over time) to one that’s fixed (the same interest rate over the life of the loan)

Get your COE started today, talk with a Loan Specialist.  


With your military service documentation, the process takes minutes to complete and ensures that your home financing moves ahead without delay.

Have questions about eligibility? Talk to a specialist.

How do I get an IRRRL?

 If you have a VA home loan be careful when considering home loan refinance offers. Claims that you can skip payments or get very low interest rates or other terms that sound too good to be true may be signs of a misleading offer.

Find a lender.
You’ll go through a private bank, mortgage company, or credit union—not directly through us—to get an IRRRL. Terms and fees may vary, so contact several lenders to check out your options.
Give your lender any needed information.
If you have the Certificate of Eligibility (COE) you used to get your original VA-backed home loan, take it to your lender to show the prior use of your entitlement. If you don’t have your original COE, ask your lender to get your COE electronically through the VA Home Loan program portal.
Follow your lender’s process for closing on the IRRRL loan, and pay your closing costs.
You may need to pay the VA funding fee. This one-time fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. Your lender will also charge interest on the loan in addition to closing fees. With an IRRRL, you can include these costs in the new loan so you don’t have to pay up front. Or, you may be able to make the new loan at an interest rate high enough so your lender can pay the costs.

Veteran's Mortgage Center

7555 N Palm Ave Suite 105

Fresno, CA 93711

NMLS: #273042

A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.


Customers with questions regarding our loan officers and their licensing may visit the Nationwide Mortgage Licensing System & Directory for more information.

Veteran's Mortgage Center | Copyright ©2020-2022 | All Rights Reserved

Privacy Policy  -  Terms & Conditions  -  Disclaimer

Documents Required to Obtain a COE

Proof of service to obtain your COE often comes in the form of the DD Form 214 for regular military, and the NGB Form 22 and NGB Form 23 for National Guard and Reserves. However, this isn’t always the case. See the required forms for each service type below.

Not sure if you qualify?

>>Talk to an experince VA Specialist today

Veteran

  • DD Form 214 (Report of Separation)

Current or Former Activated National Guard or Reserves 

  • DD Form 214 (Report of Separation)

Active Duty 

  • Statement of Service

Current National Guard or Reserves (Never Activated) 

  • Statement of Service

Discharged National Guard

 (Never Activated) 

  • NGB Form 22 (Report of Separation and Record of Service) 
  • ​NGB Form 23 (Retirement Points Accounting and proof of the character of service)
  • Army Reserve: DARP Form FM 249-2E or ARPC Form 606-E
  • ​Navy Reserve: NRPC 1070-124
  • ​Air Force Reserve: AF 526
  • ​Marine Corps Reserve: NAVMC HQ509 or NAVMC 798.
  • ​Coast Guard Reserve: CG 4174 or 4175