k. Who Can an IRRRL be Made to?

Generally, the party(ies) obligated on the original loan must be the same on the new loan (and the veteran must still own the property). 

The lender should contact VA regarding a proposed IRRRL involving a change in obligors unless the acceptability of the IRRRL is clear based on information and examples in this section.

The table below provides some examples.

In Case 7 of the example table, the divorced spouse is keeping the home and wishes to refinance.  The spouse cannot get an IRRRL unless the veteran agrees to be obligated on the new loan and commit his or her entitlement to the new loan.  (such as, a person without entitlement cannot get an IRRRL or any other type of VA loan.)

In Cases 8 through 10 of the example table, the applicants cannot obtain an IRRRL because they do not include the veteran or a person who was the veteran’s spouse at the time the original loan was made (and who was obligated on the loan along with the veteran).

In the case of the unmarried veteran obtaining the original loan (Case 8)

·  the marriage and death of the veteran occurred after the loan was made, and

·  the deceased veteran’s spouse is not obligated on the original loan.

Thus, an IRRRL is not possible.

In the case of the veteran and spouse obligated on the original loan (Case 9)

·  The divorce, remarriage, then death of the veteran occurred after the loan was made

·  The deceased veteran’s new spouse is not obligated on the original loan.

Thus, an IRRRL is not possible.