VA Streamline Refinancing
Streamline Refinancing Explained
The Veterans Administration offers veterans or their family members who have already bought a home with an existing VA Loan the opportunity to refinance their current VA Loan with streamline refinancing. With streamline refinancing, people can alter the current terms of their existing VA Loans in order to enjoy a lower interest rate, debt consolidation, and additional loans for home improvements.
The VA Streamline Refinance Program is quite popular because of how easy and simple the process is to qualify for a VA Streamline Refinance Loan. Many VA Loan holders also use the program when they have developed poor credit for one reason or another.
With a lower interest rate, the VA Loan holder has less of a financial burden each month and more of an opportunity to get his or her finances in order. A VA Streamline Refinance Loan differs from a typical loan in that you cannot receive cash from the loan. Rather, your interest rate is lowered instead. Desert Storm Veterans automatically qualify for streamline refinancing.
VA Streamline Refinancing Features
- No appraisal necessary
- No income documentation or job verification
- Opportunity to skip up to two payments
- Includes up to $6000 for energy-efficient home improvements
- Credit qualifying is not required, though you need a current existing mortgage with no more than one 30-day late payment in the last year.
The VA Streamline Refinance Process
Because you have previously qualified for a VA Loan, the streamline refinancing process is much faster than when originally applying for your VA Loan. You will not be required to undergo a thorough credit check nor will you need to or provide the extensive documentation you had to previously. The Veterans Administration has this information already on record to refer to.
Am I Eligible for Streamline Refinancing?
If you purchased your house more than six months ago and your current interest rate is lower than when you originally bought your home, you can take advantage of the VA Streamline Refinance Program. Conventional loans require a longer period for homeowners before they can refinance, but veterans are eligible for lower monthly interest rates after the six month period.
You are eligible for Streamline Refinancing if you:
- Have an existing VA Loan
- Maintain a current mortgage that has no more than one 30-day late payment in the last 12 months
- Are a veteran who served in active duty for more than 180 days or were discharged for medical reasons
- Were discharged generally or honorably
- If you are a National Guard or Reserves member, you have at least six years serving your country
- Purchased your home over six months ago; and
- Have a lower interest rate now than when you first bought your home.
If you are going through a rough time financially and meet the aforementioned eligibility requirements, streamline refinancing may be the choice for you. With the VA Streamline Refinance Program, you can prevent any bad credit from affecting your monthly interest payments.