diff --git a/zebra/connected.c b/zebra/connected.c
index ad033db390..94b56c8971 100644
--- a/zebra/connected.c
+++ b/zebra/connected.c
@@ -73,7 +73,8 @@ static void connected_announce(struct interface *ifp, struct connected *ifc)
 	if (!ifc)
 		return;
 
-	if (!if_is_loopback(ifp) && ifc->address->family == AF_INET) {
+	if (!if_is_loopback(ifp) && ifc->address->family == AF_INET &&
+	    !IS_ZEBRA_IF_VRF(ifp)) {
 		if (ifc->address->prefixlen == 32)
 			SET_FLAG(ifc->flags, ZEBRA_IFA_UNNUMBERED);
 		else
diff --git a/zebra/if_netlink.c b/zebra/if_netlink.c
index 44f87f9453..bb0a0e052e 100644
--- a/zebra/if_netlink.c
+++ b/zebra/if_netlink.c
@@ -649,8 +649,6 @@ static int netlink_interface(struct sockaddr_nl *snl, struct nlmsghdr *h,
 	ifp = if_get_by_name(name, vrf_id, 0);
 	set_ifindex(ifp, ifi->ifi_index, zns);
 	ifp->flags = ifi->ifi_flags & 0x0000fffff;
-	if (IS_ZEBRA_IF_VRF(ifp))
-		SET_FLAG(ifp->status, ZEBRA_INTERFACE_VRF_LOOPBACK);
 	ifp->mtu6 = ifp->mtu = *(uint32_t *)RTA_DATA(tb[IFLA_MTU]);
 	ifp->metric = 0;
 	ifp->speed = get_iflink_speed(ifp);
@@ -661,6 +659,8 @@ static int netlink_interface(struct sockaddr_nl *snl, struct nlmsghdr *h,
 
 	/* Set zebra interface type */
 	zebra_if_set_ziftype(ifp, zif_type, zif_slave_type);
+	if (IS_ZEBRA_IF_VRF(ifp))
+		SET_FLAG(ifp->status, ZEBRA_INTERFACE_VRF_LOOPBACK);
 
 	/* Update link. */
 	zebra_if_update_link(ifp, link_ifindex);
@@ -1143,15 +1143,15 @@ int netlink_link_change(struct sockaddr_nl *snl, struct nlmsghdr *h,
 			/* Update interface information. */
 			set_ifindex(ifp, ifi->ifi_index, zns);
 			ifp->flags = ifi->ifi_flags & 0x0000fffff;
-			if (IS_ZEBRA_IF_VRF(ifp))
-				SET_FLAG(ifp->status,
-					 ZEBRA_INTERFACE_VRF_LOOPBACK);
 			ifp->mtu6 = ifp->mtu = *(int *)RTA_DATA(tb[IFLA_MTU]);
 			ifp->metric = 0;
 			ifp->ptm_status = ZEBRA_PTM_STATUS_UNKNOWN;
 
 			/* Set interface type */
 			zebra_if_set_ziftype(ifp, zif_type, zif_slave_type);
+			if (IS_ZEBRA_IF_VRF(ifp))
+				SET_FLAG(ifp->status,
+					 ZEBRA_INTERFACE_VRF_LOOPBACK);
 
 			/* Update link. */
 			zebra_if_update_link(ifp, link_ifindex);