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VA Interest Rate Reduction Loans (IRRL): A Guide for Veterans and Service Members


As a veteran or service member, understanding your options for managing your VA home loan is crucial. One such option is the VA Interest Rate Reduction Loans (IRRL). In this blog post, we will delve into the details of IRRLs and how they can benefit you. Whether you’re looking to lower your monthly mortgage payments or reduce your overall interest costs, the IRRL program offers a viable solution. Read on to discover everything you need to know about IRRLs and how to take advantage of this opportunity as a veteran or service member.

What is an IRRL?

The Interest Rate Reduction Loan, commonly known as the IRRL or the VA streamline refinance, is a program designed to help veterans and service members save money on their VA home loans. The primary goal of an IRRL is to lower the interest rate on an existing VA loan, resulting in reduced monthly mortgage payments. This loan option is available exclusively to individuals who already have a VA loan on their primary residence.

Learn More: Guide to VA Mortgage Loans

Benefits of an IRRL:

  1. Lower Interest Rates: The IRRL program allows veterans and service members to secure a new loan with a lower interest rate, potentially resulting in significant savings over the loan’s term.
  2. Streamlined Process: Compared to traditional refinancing, the IRRL program offers a simplified application and approval process, with reduced documentation requirements and no need for a new appraisal.
  3. No Out-of-Pocket Expenses: With an IRRL, you can roll all the closing costs into the loan amount, eliminating the need for upfront payment.
  4. Flexible Eligibility Criteria: The IRRL program has lenient requirements, making it easier for veterans and service members to qualify, even if their financial situation has changed since obtaining their original VA loan.

How to Qualify for an IRRL:

To be eligible for an IRRL, you must meet certain criteria, including:

  1. Currently have a VA loan on your primary residence.
  2. Intend to occupy the property as your primary residence.
  3. Demonstrate a history of timely mortgage payments on your existing VA loan.
  4. Benefit from a lower interest rate or move from an adjustable-rate mortgage to a fixed-rate loan.

The IRRL Application Process:

The application process for an IRRL is straightforward and can be completed with the assistance of an approved VA lender. Here are the general steps involved:

  1. Find an Approved VA Lender: Research and select a VA-approved lender who can guide you through the IRRL application process.
  2. Submit the Application: Provide the necessary documents, such as your Certificate of Eligibility (COE), current mortgage statement, and proof of income, to your chosen lender.
  3. Await Approval and Closing: Your lender will review your application and documentation before determining your eligibility. Once approved, you will proceed to the closing stage, where the new loan terms will be finalized.


VA Interest Rate Reduction Loans (IRRLs) are a valuable tool for veterans and service members seeking to lower their monthly mortgage payments and reduce their overall interest costs. This streamlined refinancing option provides numerous benefits, including lower interest rates, simplified application processes, and minimal out-of-pocket expenses. If you’re a veteran or service member with an existing VA loan, exploring the IRRL program could lead to substantial savings and improved financial stability.

At Metropolitan Mortgage Corporation, we are here to assist veterans and service members in Kansas and Missouri throughout the IRRL application process. Our team of experts is dedicated to providing personalized guidance and helping you make the most of this opportunity. Act now and discover how Metropolitan Mortgage Corporation can help you achieve greater financial freedom as a veteran or service member.

Rick Woodruff
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