VA Streamline Refinance Guide

The VA Streamline Refinance program is a popular refinance program that enables you to take advantage of several benefits that are available to you. Here are the basics of the VA Streamline Refinance loan program.

Purpose of the Loan

In order to qualify for this loan program, you will have to refinance for the proper reasons. The only reason that you can use this program is to lower your interest rate and monthly payment. This is not the type of refinance loan program that you can use to take cash out of your home equity. If you have been paying on your mortgage for several years, you will undoubtedly have some equity in your house. By refinancing with this loan, you will be able to extend the loan term which will lower your monthly payment.

Existing Customers

In order to qualify for this loan program, you will have to be an existing VA mortgage customer. If you have any other type of mortgage, you will not be able to get involved with the VA Streamline Refinance program.

No Delinquency

In addition to having a VA loan, you must also not be delinquent on your existing mortgage. If you have more than one late payment over the previous 12 months, you may not be able to qualify for the program. If you only have one late payment, they may be able to get you approved for the refinance program.

Simplicity

This type of loan program is without a doubt one of the simplest loan programs in the world. With this refinance loan, you will not have to go through the normal approval process. In fact, the lender is not even going to look at your credit report. They will also not take into consideration how much money you make or verify that you are currently employed. Besides not evaluating your personal situation, they will also not need to conduct an appraisal on the property. Since you are already an existing customer, they already have an appraisal on the property on file. Since you have not been delinquent on your mortgage, they do not find it necessary to verify that you are employed or have good credit. They know that you have been making your monthly payment, and you are likely to continue doing so in the future.

Speed

With a lack of verification processes and appraisals, this type of loan will be processed extremely fast. Once you apply, you will not have to wait for weeks in order to get approved. Although it will depend on the volume that they are currently dealing with, most lenders can process this type of loan much faster than anything else. This will allow you to start saving money with a lower interest rate and monthly payment very quickly. In many cases, you will be able to get this program set up before your next mortgage payment is scheduled to be due. 

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