VA Streamline – What are the benefits and do I qualify?
Whether you are active military looking to secure a lower interest rate to help the financial well being of your family back home, or even retired military just looking to lower your monthly payments, it is a great time to consider a VA Streamline refinance.
VA Streamline – Tip#1: Understand the benefits of this program.
VA Streamline refinances, also known as “IRRRL” loans (interest rate reduction refinance loans) are very popular among veterans because there are many benefits while the underwriting guidelines are more lenient than your average conventional or FHA loan. First, if you currently have a VA mortgage, many lenders will qualify you based on the original income and assets from when you were originally approved for the mortgage during the purchase and therefore not require updated income and asset documentation during the VA Streamline refinance. Also, on VA Streamline transactions, there is usually no appraisal required as long as you go through the same lender who is currently servicing your mortgage. In today’s tough real estate market, any loan program that doesn’t require an appraisal is very popular and that is definitely the case with a VA Streamline refinance.
VA Streamline – Tip#2: Find out if you meet the general guidelines.
When you compare mortgage rates on a VA Streamline refinance, its important to first determine whether you will qualify based on the general guidelines. VA Streamline refinances’ guidelines are fairly easy to meet. Generally speaking, as long as you are a member of and of the Armed Forced, you currently have a VA loan that you’ve been paying on time, you have at least a 640 middle credit score, and you are still employed, you should qualify. There are other criteria but those are the primary requirements for qualifying for a VA Streamline refinance.
When you compare mortgage rates for a VA Streamline Refinance, many would argue the most important factor is to go with your current lender, or, a different lender that will not require a new appraisal.
VA Streamline – Tip#3: Really try to keep your finances in order.
Since there are few qualifications for becoming approved for a VA Streamline refinance, its essential to focus on those few criteria that exist in an effort to stay eligible. We realize that time are hard right now and especially for military families, but if times get really tough and some bills need to be paid late, its essential to prioritize and try to make your mortgage payment on time. The reason is that when you apply for a VA Streamline Refinance, most lenders will require you have made timely mortgage payments for at least the last 12 consecutive months. Those who don’t make timely payments likely wont qualify for a VA Streamline refinance and would therefore miss out on today’s historically low interest rates that would otherwise be able to provide real financial relief.
Author Joe Karns is sales and marketing leader and master of the VA Streamline dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders. Or, click here for a free quote on a Va Streamline.