Streamline Refinance Loans
Benefits of a Streamline Refinance Loan
There are a variety of advantages to being a part of the Veterans Administration’s Streamline Refinance Program. First of all, you have the chance to adjust your interest rate, change the terms of your loan or program, and lower your monthly payments all with no out-of-pocket expenses. With traditional loan refinancing, homeowners often incur costs getting another appraisal and re-qualifying for their new loan refinancing terms. But with a VA Streamline Refinance Loan, there is no credit qualifying or additional appraisal involved in lowering your monthly payments and interest rate.
Many veterans use their streamline refinance loan to:
- Skip their next month’s mortgage payment
- Lower their monthly interest rate
- Get back on their feet and put their finances in order
Qualifying for the VA Streamline Refinance Program
VA Streamline Refinance Loans are available for veterans, military personnel, and surviving spouses who currently have an existing VA loan. There are a few additional qualifications, such as having bought your home more than six months ago, serving in active duty for more than 180 days, having an honorable or general discharge, and having a lower interest rate than when you first purchased your home. In addition, you cannot have paid your mortgage more than 30 days late in the past year more than once.
The Veterans Administration understands that in times of financial distress, veterans do not want the long hassle and wait periods that typically accompany a refinancing procedure. Therefore, they make the process as friendly and ‘streamlined’ as they can. The VA uses your previous paperwork and documentation from when you first applied for your VA loan to process your streamline refinancing request much faster so you can enjoy its benefits.
Types of Eligible Homes
Streamline Refinance Loans can used to purchase various types of homes for your family, including:
- New construction homes
- Homes in Veteran Administration locations
- Single-family dwellings
- Townhomes; and
- Condominiums
Continuous Refinance Streamlining
One of the best perks of a Streamline Refinance Loan is that there is no limit to the number of times you can streamline your loan. In effect, the Veterans Administration has set up a program where anytime the interest rates in the current market are lower than your interest rate, you can adjust your rate to match the market rate. With a VA Streamline Refinance Loan, rest assured that you will never be paying more than the current market rate when you cannot afford to.
Is a Streamline Refinance Loan Right for Me?
Our VA Loan company specializes in providing advice to veterans about VA Loans and can help you determine whether a VA Streamline Refinance Loan is right for you. Though they provide up to $6,000 for energy-efficient improvements on your home, Streamline Refinance Loans do not offer consolidation or cash-out options like other types of VA Loans do.
Therefore, if you want to consolidate or need cash, another VA loan option might be better suited to you. However, in times of financial distress or when your credit goes down, a VA Streamline Refinance Loan can be an excellent and easy way of reducing your monthly costs.