VA IRRRL Loans

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.

Am I eligible for an IRRRL?

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

All of these must be true. You:

  • 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.

Why might I want to get an IRRRL?

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)

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 Victory Mortgage Group can advise you on the costs and benefits of the transaction, you’ll want to be sure you understand what you’re getting into.
Learn about the VA funding fee and other closing costs
Visit the Consumer Financial Protection Bureau for more information
Download the Bureau’s home loan toolkit (PDF)

How do I get an IRRRL?

  1. Contact Victory Mortgage Group.

    You’ll go through Victory Mortgage Group to get an IRRRL. Terms and fees may vary, so we'll need to discuss this with you to review your options.

    Note: 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.
    Learn more about the signs of misleading refinance offers

  2. Give Victory Mortgage Group any needed information.

    If you have the Certificate of Eligibility (COE) you used to get your original VA-backed home loan, provide this to us to show the prior use of your entitlement. If you don’t have your original COE, ask us to get your COE electronically through the VA Home Loan program portal.

  3. Follow our 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. We may also charge interest on the loan in addition to closing fees.
    Learn about the VA funding fee and other closing costs

    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 we can pay the costs.

Working with Victory Mortgage Group

  • We put YOU first.
  • Victory Mortgage Group offers some of the most competitive rates in the Nation!
  • Fast and efficient, we close most of our loans in 30 days or less.
  • We offer a variety of loans. Victory Mortgage Group will find you the loan that is right for you!!!