38 CFR §36.4307 — Interest rate reduction refinancing loan

va-38cfr-36-4307

38 CFR §36.4307 sets the VA regulatory eligibility requirements for an Interest Rate Reduction Refinancing Loan (IRRRL) guaranteed under 38 U.S.C. 3710(a)(8), (a)(9)(B)(i), and (a)(11). The rule conditions VA guaranty/insurance on a closed list of structural requirements: same- dwelling security, veteran occupancy (or qualifying prior occupancy / active-duty spouse occupancy), payment-or-term-reducing benefit (or fixed-rate-refinances-ARM / EEM / Secretary-approved imminent- foreclosure carve-outs), refinance-amount cap, delinquent-loan Secretary-prior-approval rule, guaranty-amount cap, and term cap.

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source:
  type: regulation
  id: va-38cfr-36.4307
  authority: 38 CFR §36.4307 — Interest rate reduction refinancing loan
  description: |
    38 CFR §36.4307 sets the VA regulatory eligibility requirements for an
    Interest Rate Reduction Refinancing Loan (IRRRL) guaranteed under
    38 U.S.C. 3710(a)(8), (a)(9)(B)(i), and (a)(11). The rule conditions VA
    guaranty/insurance on a closed list of structural requirements: same-
    dwelling security, veteran occupancy (or qualifying prior occupancy /
    active-duty spouse occupancy), payment-or-term-reducing benefit (or
    fixed-rate-refinances-ARM / EEM / Secretary-approved imminent-
    foreclosure carve-outs), refinance-amount cap, delinquent-loan
    Secretary-prior-approval rule, guaranty-amount cap, and term cap.
obligations:
  - id: va-38cfr-36.4307-a-irrrl-eligibility-requirements
    canonical_id: va-38cfr-36.4307-a-irrrl-eligibility-requirements
    section: '38 CFR §36.4307(a) — IRRRL eligibility: all conditions required'
    description: |
      [LENDER], to obtain a VA guaranty or insurance on an Interest Rate
      Reduction Refinancing Loan made to a veteran under 38 U.S.C. 3710(a)(8),
      (a)(9)(B)(i), or (a)(11), must ensure that all of the requirements in
      §36.4307(a)(1)–(7) are met before closing — including (1) same-dwelling
      or same-farm-residence security, (2) veteran ownership and a qualifying
      occupancy status (current occupancy as home, certified prior occupancy,
      or active-duty spouse occupancy), (3) the §36.4307(a)(3) benefit test
      (lower P&I, shorter term, fixed-rate refinance of a VA-guaranteed ARM,
      or EEM / Secretary-approved imminent-foreclosure carve-out), (4) the
      refinance-amount cap, (5) the delinquent-loan prior-approval rule,
      (6) the guaranty-amount cap, and (7) the term-extension cap.
    type: do
    audit_question: For every VA IRRRL [LENDER] closes, can [LENDER] evidence satisfaction of each of the seven §36.4307(a) requirements — same-dwelling security, qualifying veteran occupancy, payment/term/ARM-to-fixed/EEM/imminent-foreclosure benefit, refinance-amount cap, delinquent-loan prior-approval rule (if applicable), guaranty-amount cap, and term-extension cap?
    program_review: Does the program account for all seven §36.4307(a) IRRRL conditions before closing — same-dwelling security, qualifying veteran occupancy, the (a)(3) benefit test, refinance-amount cap, delinquent-loan prior-approval rule, guaranty-amount cap, and term-extension cap?
    file_review: Pull IRRRLs; confirm each of the seven §36.4307(a) conditions is satisfied and evidenced. The officer judges whether the occupancy certification and benefit-test basis are adequate.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-va-irrrl-closing
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - va
      - irrrl
      - refinance
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 38 CFR §36.4307(a)
      source_class: va-regulation
      source_url: https://www.law.cornell.edu/cfr/text/38/36.4307
      snapshot_id: 994744a0c6edc3e4
      fetched_at: '2026-05-24T19:34:24Z'
      content_hash: sha256:23102a370a5bd287e3b6526e92748e65fc39e43e8ac0d094ca45b3ccf2312645
      paragraph_quote: '(a) Pursuant to 38 U.S.C. 3710(a)(8) , (a)(9)(B)(i), and (a)(11), a veteran may refinance an existing VA guaranteed, insured, or direct loan to reduce the interest rate payable on the existing loan provided that all of the following requirements are met:'
      drafter_attestation: |
        Copied verbatim from snapshot 994744a0c6edc3e4 (content.txt) at
        2026-05-24T19:40Z. Substring is the §36.4307(a) operative headline;
        the (1)–(7) sub-requirements are paraphrased in description.
    sub_criteria:
      - id: va-38cfr-36.4307-a1-same-dwelling
        label: same_dwelling_security
        question: Can [LENDER] evidence that the new loan is secured by the same dwelling or farm residence as the loan being refinanced?
        cite: §36.4307(a)(1)
        derivation_kind: verbatim_from_source
      - id: va-38cfr-36.4307-a2-veteran-occupancy
        label: veteran_occupancy
        question: Can [LENDER] evidence that the veteran owns the property and either currently occupies it as a home, has certified prior occupancy, or has an active-duty-related spouse occupancy in the §36.4307(a)(2)(iii) form required by the Secretary?
        cite: §36.4307(a)(2)
        derivation_kind: verbatim_from_source
      - id: va-38cfr-36.4307-a3-benefit-test
        label: payment_or_term_benefit_test
        question: Can [LENDER] evidence that the new loan satisfies one of the §36.4307(a)(3) benefit prongs — lower monthly P&I, shorter term, fixed-rate refinance of a VA-guaranteed ARM, EEM-driven payment increase under §36.4339(a)(4), or Secretary prior approval to prevent imminent foreclosure under §36.4340?
        cite: §36.4307(a)(3)
        derivation_kind: verbatim_from_source
      - id: va-38cfr-36.4307-a5-delinquent-loan-prior-approval
        label: delinquent_loan_prior_approval
        question: Where the loan being refinanced is delinquent (scheduled monthly P&I more than 30 days past due), can [LENDER] evidence Secretary prior approval based on the borrower-supplied delinquency reasons, evidence the cause has been corrected, and §36.4340 credit qualification?
        cite: §36.4307(a)(5)
        derivation_kind: verbatim_from_source
      - id: va-38cfr-36.4307-a7-term-cap
        label: term_extension_cap
        question: Can [LENDER] evidence that the IRRRL term does not exceed the original term of the refinanced loan plus 10 years, or the maximum loan term allowed under 38 U.S.C. 3703(d)(1), whichever is less (with the manufactured-home carve-out under 38 U.S.C. 3712 / 3710(a)(9)(B)(i) applied only where applicable)?
        cite: §36.4307(a)(7)
        derivation_kind: verbatim_from_source
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: va-38cfr-36.4307-roundc-v1.yaml
  - id: va-38cfr-36.4307-a4i-refinance-amount-cap
    canonical_id: va-38cfr-36.4307-a4i-refinance-amount-cap
    section: '38 CFR §36.4307(a)(4)(i) — Refinance amount cap: balance + closing costs + 2% discount'
    description: |
      [LENDER] must ensure that the IRRRL amount does not exceed the balance
      of the loan being refinanced (which is not delinquent, except as
      provided in §36.4307(a)(5)) plus closing costs authorized by §36.4313(d)
      and a discount not to exceed 2 percent of the loan amount, unless the
      §36.4307(a)(4)(ii) energy-efficient-improvements carve-out applies.
    type: do
    audit_question: For every VA IRRRL [LENDER] closes, can [LENDER] evidence that the new loan amount does not exceed the refinanced-loan balance plus §36.4313(d)-authorized closing costs plus a discount of no more than 2% of the loan amount, with the §36.4307(a)(4)(ii) EEM carve-out applied only where supported?
    program_review: Does the program account for the §36.4307(a)(4)(i) amount cap (refinanced-loan balance + §36.4313(d) closing costs + up to 2% discount) and its (a)(4)(ii) energy-efficient-improvements carve-out?
    file_review: Spot-check IRRRLs; confirm the new loan amount stays within balance + authorized closing costs + 2% discount, applying the EEM carve-out only where supported.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-va-irrrl-closing
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - va
      - irrrl
      - refinance-amount-cap
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 38 CFR §36.4307(a)(4)(i)
      source_class: va-regulation
      source_url: https://www.law.cornell.edu/cfr/text/38/36.4307
      snapshot_id: 994744a0c6edc3e4
      fetched_at: '2026-05-24T19:34:24Z'
      content_hash: sha256:23102a370a5bd287e3b6526e92748e65fc39e43e8ac0d094ca45b3ccf2312645
      paragraph_quote: (i) An amount equal to the balance of the loan being refinanced, which is not delinquent, except as provided in paragraph (a)(5) of this section, plus closing costs authorized by § 36.4313(d) and a discount not to exceed 2 percent of the loan amount; or
      drafter_attestation: |
        Copied verbatim from snapshot 994744a0c6edc3e4 (content.txt) at
        2026-05-24T19:40Z. Substring is the full §36.4307(a)(4)(i) operative
        paragraph.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: va-38cfr-36.4307-roundc-v1.yaml
  - id: va-38cfr-36.4307-a6-guaranty-amount-cap
    canonical_id: va-38cfr-36.4307-a6-guaranty-amount-cap
    section: 38 CFR §36.4307(a)(6) — IRRRL guaranty-amount cap
    description: |
      [LENDER] must ensure that the dollar amount of guaranty on the
      38 U.S.C. 3710(a)(8) or (a)(9)(B)(i) IRRRL does not exceed the greater
      of the original guaranty amount of the loan being refinanced or 25
      percent of the new loan.
    type: do
    audit_question: For every VA IRRRL [LENDER] closes under 38 U.S.C. 3710(a)(8) or (a)(9)(B)(i), can [LENDER] evidence that the dollar amount of guaranty does not exceed the greater of (a) the original guaranty amount on the refinanced loan or (b) 25% of the new loan amount?
    program_review: Does the program account for the §36.4307(a)(6) guaranty cap — the guaranty dollar amount must not exceed the greater of the original guaranty amount or 25% of the new loan?
    file_review: Spot-check IRRRLs under 3710(a)(8)/(a)(9)(B)(i); confirm the guaranty amount is within the greater-of cap.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-va-irrrl-closing
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - va
      - irrrl
      - guaranty-cap
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 38 CFR §36.4307(a)(6)
      source_class: va-regulation
      source_url: https://www.law.cornell.edu/cfr/text/38/36.4307
      snapshot_id: 994744a0c6edc3e4
      fetched_at: '2026-05-24T19:34:24Z'
      content_hash: sha256:23102a370a5bd287e3b6526e92748e65fc39e43e8ac0d094ca45b3ccf2312645
      paragraph_quote: (6) The dollar amount of guaranty on the 38 U.S.C. 3710(a)(8) or (a)(9)(B)(i) loan does not exceed the greater of the original guaranty amount of the loan being refinanced or 25 percent of the new loan .
      drafter_attestation: |
        Copied verbatim from snapshot 994744a0c6edc3e4 (content.txt) at
        2026-05-24T19:40Z. Substring is the full §36.4307(a)(6) operative
        paragraph.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: va-38cfr-36.4307-roundc-v1.yaml
  - id: va-38cfr-36.4307-c-title-conformity
    canonical_id: va-38cfr-36.4307-c-title-conformity
    section: 38 CFR §36.4307(c) — Title conformity with §36.4354
    description: |
      For every IRRRL [LENDER] closes, [LENDER] must ensure that title to the
      estate refinanced for the purpose of an interest rate reduction is in
      conformity with the §36.4354 title-evidence requirements applicable to
      VA-guaranteed loans.
    type: do
    audit_question: For every VA IRRRL [LENDER] closes, can [LENDER] evidence that title to the refinanced estate conforms to the §36.4354 title-evidence requirements?
    program_review: Does the program ensure title to the refinanced estate conforms to the §36.4354 title-evidence requirements on every IRRRL?
    file_review: Spot-check IRRRLs; confirm title evidence conforms to §36.4354.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-va-irrrl-closing
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - va
      - irrrl
      - title-conformity
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: 38 CFR §36.4307(c)
      source_class: va-regulation
      source_url: https://www.law.cornell.edu/cfr/text/38/36.4307
      snapshot_id: 994744a0c6edc3e4
      fetched_at: '2026-05-24T19:34:24Z'
      content_hash: sha256:23102a370a5bd287e3b6526e92748e65fc39e43e8ac0d094ca45b3ccf2312645
      paragraph_quote: (c) Title to the estate which is refinanced for the purpose of an interest rate reduction must be in conformity with § 36.4354 .
      drafter_attestation: |
        Copied verbatim from snapshot 994744a0c6edc3e4 (content.txt) at
        2026-05-24T19:40Z. Substring is the full §36.4307(c) operative
        paragraph.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: va-38cfr-36.4307-roundc-v1.yaml
  - id: va-38cfr-36.4307-a-irrrl-eligibility-requirements-enumerated-items
    canonical_id: va-38cfr-36.4307-a-irrrl-eligibility-requirements-enumerated-items
    section: '38 CFR §36.4307(a) — IRRRL eligibility: all conditions required — enumerated items (chapeau recall fix)'
    description: 'The enumerated provisions following the chapeau of 38 CFR §36.4307(a) — IRRRL eligibility: all conditions required, dropped by the original extraction and restored verbatim from the snapshot.'
    type: do
    audit_question: ''
    program_review: ''
    file_review: ''
    judgment: false
    feeds: []
    workflow_phase: ''
    owner_role: ''
    secondary_owner_role: ''
    cadence: ''
    consequence: ''
    tags:
      - chapeau-recall
      - regulator-direct
      - promoted
    primary_source:
      tier: 1
      authority: 38 CFR §36.4307(a)
      source_class: va-regulation
      source_url: https://www.law.cornell.edu/cfr/text/38/36.4307
      snapshot_id: 994744a0c6edc3e4
      fetched_at: '2026-05-24T19:34:24Z'
      content_hash: sha256:23102a370a5bd287e3b6526e92748e65fc39e43e8ac0d094ca45b3ccf2312645
      paragraph_quote: (1) The new loan must be secured by the same dwelling or farm residence as the loan being refinanced. (2) The veteran owns the dwelling or farm residence securing the loan and
      drafter_attestation: Captured verbatim (whitespace-normalized) from snapshot 994744a0c6edc3e4 as the enumerated list immediately following the chapeau 'l of the following requirements are met:'. List boundary captured conservatively — REVIEW the end boundary before promote.
    promoted_at: '2026-06-16T19:35:56+00:00'
    promoted_from: va-38cfr-36.4307-chapeau-recall-v1.yaml
    source_provenance:
      source_id: va-38cfr-36.4307
      fetched_at: '2026-05-24T19:34:24Z'
      content_hash: sha256:23102a370a5bd287e3b6526e92748e65fc39e43e8ac0d094ca45b3ccf2312645
_promotion_history:
  - promoted_at: '2026-05-24T20:12:26+00:00'
    candidate_path: obligations\_remediation\round-c-type-a\va-38cfr-36.4307-roundc-v1.yaml
    candidates_promoted: 4
    candidates_skipped_existing: 0
  - promoted_at: '2026-06-16T19:35:56+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\chapeau-recall\va-38cfr-36.4307-chapeau-recall-v1.yaml
    candidates_promoted: 1
    candidates_skipped_existing: 0
  - promoted_at: '2026-06-16T19:38:27+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\chapeau-recall\va-38cfr-36.4307-chapeau-recall-v1.yaml
    candidates_promoted: 0
    candidates_skipped_existing: 1
  - promoted_at: '2026-06-16T19:39:15+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\chapeau-recall\va-38cfr-36.4307-chapeau-recall-v1.yaml
    candidates_promoted: 0
    candidates_skipped_existing: 1

Verbatim regulatory text (5)

Verbatim provisions from 38 CFR §36.4307 — Interest rate reduction refinancing loan — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

38 CFR §36.4307(a) — IRRRL eligibility: all conditions required

(a) Pursuant to 38 U.S.C. 3710(a)(8) , (a)(9)(B)(i), and (a)(11), a veteran may refinance an existing VA guaranteed, insured, or direct loan to reduce the interest rate payable on the existing loan provided that all of the following requirements are met:

Source: 38 CFR §36.4307(a) · source URL · snapshot 994744a0c6edc3e4

38 CFR §36.4307(a)(4)(i) — Refinance amount cap: balance + closing costs + 2% discount

(i) An amount equal to the balance of the loan being refinanced, which is not delinquent, except as provided in paragraph (a)(5) of this section, plus closing costs authorized by § 36.4313(d) and a discount not to exceed 2 percent of the loan amount; or

Source: 38 CFR §36.4307(a)(4)(i) · source URL · snapshot 994744a0c6edc3e4

38 CFR §36.4307(a)(6) — IRRRL guaranty-amount cap

(6) The dollar amount of guaranty on the 38 U.S.C. 3710(a)(8) or (a)(9)(B)(i) loan does not exceed the greater of the original guaranty amount of the loan being refinanced or 25 percent of the new loan .

Source: 38 CFR §36.4307(a)(6) · source URL · snapshot 994744a0c6edc3e4

38 CFR §36.4307(c) — Title conformity with §36.4354

(c) Title to the estate which is refinanced for the purpose of an interest rate reduction must be in conformity with § 36.4354 .

Source: 38 CFR §36.4307(c) · source URL · snapshot 994744a0c6edc3e4

38 CFR §36.4307(a) — IRRRL eligibility: all conditions required — enumerated items (chapeau recall fix)

(1) The new loan must be secured by the same dwelling or farm residence as the loan being refinanced. (2) The veteran owns the dwelling or farm residence securing the loan and

Source: 38 CFR §36.4307(a) · source URL · snapshot 994744a0c6edc3e4