We’ll make this simple – if you already have a VA loan and have refinancing questions then you should stick around. If you don’t care about VA loans and you are not eligible for one, then you should go unless you are one of those people who has an unquenchable thirst for obscure information about things that most people don’t know about.
The VA streamline refinance is a wonderful option for those homeowners who can get it as it has very little qualifying requirements to it. For starters, the VA doesn’t require an appraisal on the property as long as you are not trying to refinance to pay off other debt, or if your payment is going to go up (except if you are doing some minor energy efficient upgrades to your property).
In most case you shouldn’t have to provide credit information beyond your mortgage history. You also shouldn’t have to provide income information either.
This was all the good news about this program – now for the catch (and more good news at the end of this post). Given the current state of the housing market as of June 2011, you may have to get your home appraised and you may be asked for your credit report and have to have decent credit scores. You may also have to prove employment and income. Each of these items may be required based on where you live and the VA lender you decide to get your loan with.
The bottom line here: the VA streamline is a great program it is worth looking into it if you are eligible for it and if you are looking to refinance. If you qualify for it there are some perks to the program that you may be interested in.
Perks of the VA streamline program include: the possibility to put off up to two months of mortgage payments, a cash refund of your previous escrow balance, no out of pocket closing costs like you may have had to pay when you bought your home, and the opportunity to borrow up to an extra $6000 for energy efficient home improvements.
There you have it – if this loan is for you and you qualify you ought to be dialing for lenders by now. If you aren’t eligible for this loan but you stuck around to read this then you should be an unknowing Vet’s best friend someday if you pass this information along to them.