source:
  type: guide
  id: va-m26-7-ch06-t02
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 2 — IRRRL Made
    to Refinance a Delinquent Loan
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 2 — IRRRL
    Made to Refinance a Delinquent Loan.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch06-t02-full
  canonical_id: va-m26-7-ch06-t02-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 2 — IRRRL Made
    to Refinance a Delinquent Loan
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 6, Topic 2 — IRRRL
      Made to Refinance a Delinquent Loan
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: e9c94ae5dc0a61f0
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:3cffeec90efad00b76c2984956a10f10bd9f0b99880c94bd3c269192cfe674f5
    paragraph_quote: '2. IRRRL Made to Refinance a Delinquent Loan Change Date April
      10, 2009, Change 11 • This section has been changed to update hyperlinks and
      to make minor grammatical edits. a. Prior Approval Submission Any IRRRL made
      to refinance a loan that will be 30 days or more past due as of the date of
      closing, must be submitted for prior approval. The lender must first obtain
      sufficient information and perform sufficient analysis to determine that: •
      the cause of the delinquency has been resolved, and • the veteran is willing
      and able to make the proposed loan payments. Submit a written proposal to VA
      which contains the following information: Item Information 1 The full name of
      the veteran and all other parties obligated on the prior loan and to be obligated
      on the new loan. 2 The VA loan number and month and year of origination of the
      loan to be refinanced. 3 The name and address of the lender proposing to make
      the loan. 4 The approximate proposed loan amount, interest rate, and term for
      the new loan versus the old loan. 5 Discount to be charged, expressed as a percentage
      of the loan and a dollar amount. 6 Statement signed by the veteran acknowledging
      the effect of the refinancing loan on the veteran’s loan payments and interest
      rate. • The statement must show the interest rate and monthly payments for the
      new loan versus that for the old loan. • The statement must also indicate how
      long it will take to recoup ALL closing costs (both those included in the loan
      and those paid outside of closing). Continued on next page VA Pamphlet 26-7,
      Revised Chapter 6: Refinancing Loans 6-14 2. IRRRL Made to Refinance a Delinquent
      Loan, Continued a. Prior Approval Submission (continued) Item Information 7
      The appropriate certification concerning occupancy signed by the veteran or
      the spouse of an active duty servicemember. One of the following must be signed.
      “I have previously occupied the property securing this loan as my home.” ___________________
      veteran’s signature “While my spouse was on active duty and unable to occupy
      the property securing this loan, I occupied the property securing this loan
      as my home.” _________________ spouse’s signature 8 VA Form 26-8923, Interest
      Rate Reduction Refinancing Loan Worksheet. 9 VA Form 26-8937, Verification of
      VA Benefits (if applicable). 10 Certificate of Eligibility, or, if unavailable,
      a request for a duplicate certificate VA Form 26-1880, Request for a Certificate
      of Eligibility. 11 Uniform Residential Loan Application (URLA). 12 Explanation
      of the reason(s) for the loan delinquency, including appropriate documentation
      to verify the cause. 13 Documentation to verify that the cause of the delinquency
      has been corrected. 14 Credit report (in-file credit report is acceptable).
      15 Current pay stub and telephone verification of current employment. 16 VA
      Form 26-6393, Loan Analysis. 17 Documentation of the cost of energy efficiency
      improvements to be included in the loan, if known. See section 3 of chapter
      7. For cash reimbursement of the veteran, the improvements must be completed
      within the 90 days immediately preceding the date of the loan. Continued on
      next page VA Pamphlet 26-7, Revised Chapter 6: Refinancing Loans 6-15 2. IRRRL
      Made to Refinance a Delinquent Loan, Continued b. What Happens Next? VA will
      inform the lender of its decision. The lender may close the loan in reliance
      on a VA-issued Certificate of Commitment. Reference: See section 4 of chapter
      5 for further information on the Certificate of Commitment. c. How to Report
      Loan Closing and Request Guaranty A prior approval IRRRL must be reported (such
      as, all documentation submitted) to VA within 60 days of closing. A lender that
      fails to meet this time limit must provide a written explanation. (see order
      #8). To report an IRRRL, submit the following documents to VA in the order listed.
      Order Document 1 Lender’s cover or transmittal letter (if used). 2 VA Form 26-0286,
      VA Loan Summary Sheet. 3 Funding fee receipt. See section 8 of chapter 8 for
      information on exemptions. 4 If the loan amount has increased beyond the amount
      indicated on the Certificate of Commitment, an updated VA Form 26-8923, Interest
      Rate Reduction Refinancing Loan Worksheet. 5 VA Form 26-1820, Report and Certification
      of Loan Disbursement. 6 HUD-1, settlement statement. 7 VA Form 26-0503, Federal
      Collection Policy Notice. 8 If loan is submitted more than 60 days after loan
      closing, a statement signed by a corporate officer of the lender which identifies
      the loan and provides the specific reason(s) why the loan was not submitted
      on time. 9 Any other necessary documents. (See section 6 of chapter 5.) Continued
      on next page VA Pamphlet 26-7, Revised Chapter 6: Refinancing Loans 6-16 2.
      IRRRL Made to Refinance a Delinquent Loan, Continued d. Treatment of Late Payments
      and Late Charges All late payments and late charges (and reasonable costs if
      legal action to terminate the old loan has commenced) can be rolled into the
      new loan. If the amount of late payments, late charges and legal costs is significant,
      the proposed monthly payment will be adversely impacted. Carefully analyze whether
      the IRRRL would benefit the veteran and not create unacceptable risk to the
      Government in light of the new monthly payment. VA Pamphlet 26-7, Revised Chapter
      6: Refinancing Loans 6-17'
  judgment: false
