People keep asking me, "What is a VA streamline?" If you are a veteran and currently have a VA mortgage, you may qualify for a VA streamline refinance loan that requires no new appraisal. The VA Dept. offers the Interest Rate Reduction Refinance Loan (IRRRL) that can provide a low cost refinancing option for veterans. With VA mortgage rates still significantly lower than historical averages, now is the time to act. Here is some basic information on VA streamline refinance loans to start thinking about.
The streamline refinance is working off of the original qualification process you went through to get your original loan. If your current mortgage is financed by the VA, that is the first qualification checked off. This loan does not require an appraisal. Income documentation and job verification is not required and neither is credit qualifying. The only credit requirement is that you be current on your mortgage and have had no more than one mortgage payment past thirty days due in the last 12 months. What could be easier than that?
According to the VA Home Loan Company, another great feature is that the "VA streamline refinance loan is that you can get it with no closing costs." The only cost to the loan is a 0.5% funding fee. And that can be wrapped up in the mortgage. Now, you cannot cash-out on your mortgage with this particular loan. (If you would like to do that, you need to speak with a mortgage professional about cash-out with VA refinance loans.) However, if you have some energy improvements you would like to make to your house, you may be able get up to $6000 added to the VA mortgage loan to cover these costs.
With credit tightening and underwriting becoming more difficult, the VA streamline refinance option by-passes this for veterans. However, it is in the best interests of any veteran to know what a VA lender should be saying. If a lender tries to say they are the only one qualified to make VA IRRRL loans, they are wrong. Any VA lender can. If they say that there are certain lender costs that must be added, be wary. The only cost associated is the 0.5% funding fee. And be cautious if you are going to refinance your home for more than it is worth. You may get into a situation where you would find it difficult to sell your home and cover the mortgage. See a VA mortgage professional for guidance before making any financial decisions.
0 comments:
Post a Comment