VA And FHA Streamline Refinance Mortgage Guidelines

This Article Is About VA And FHA Streamline Refinance Mortgage Guidelines

Streamline Refinance is a fast track refinance mortgage process that requires limited documentation.

  • VA and FHA Loans are the only two mortgage programs that offer streamline refinance mortgages
  • VA And FHA Streamline Refinance Loan Process are similar with very minor exceptions due to Agency Guidelines
  • Streamline Refinance process is very simple
  • Most Streamline Refinance loans close in 21 days or less

VA And FHA Streamline Refinance Mortgage ProcessVA And FHA Streamline Refinance

VA Streamline Refinance Mortgages is often referred to as the Interest Rate Reduction Refinancing Loan or IRRRL.

  • Only homeowners with a current VA Home Loan can qualify for an IRRRL
  • All borrowers on the original VA Loan needs to be on the new VA Streamline Refinance Mortgage
  • There is no appraisal required on IRRRL’s
  • There is no income documentation required
  • Credit scores are used to qualify mortgage interest rates
  • Most VA Streamline Refinance Mortgages close in 21 days or less

IRRRL’s are for rate and term VA Refinances only. Cannot do a VA Cash-Out Refinance with an IRRRL  All closing costs can be rolled into the VA Loan balance.

FHA Guidelines On Streamlines

FHA Streamline Refinance Mortgages are similar to VA Streamlines.

  • Homeowners need to have an FHA Loan to be able to streamline it to another FHA loan without an appraisal, no income verification, and limited docs
  • The old FHA Loan will be paid off with the new FHA Loans with a lower mortgage interest rate
  • Borrowers need to have a net tangible benefit to qualify for an FHA Streamline Mortgage
  • Streamlines are for rate and term refinance loans only
  • Cannot get any cash-out on streamlines
  • All original borrowers including non-occupant co-borrowers need to be on the new FHA Loan
  • There is no  home appraisal required on streamline refinance mortgages
  • There are no documents required on streamlines
  • Credit scores are used for pricing mortgage rates
  • The higher the borrower’s credit scores, the lower their mortgage rates will be

Most FHA Streamlines at Gustan Cho Associates can close in 21 days or less.

Late Payment Guidelines VA And FHA Streamline Refinance

What are the Late Payment Guidelines for VA and FHA Streamline Refinance

Streamline Refinance borrowers can have bad credit and qualify.

  • Borrowers can have late payments in the past 12 months and still qualify for streamline refinances
  • However, you do need timely payments on your housing payments in the past 12 months
  • You can have late payments, collections, charged-off accounts, and other derogatory credit tradelines in the past 12 months and still qualify
  • Many borrowers say its too good to be true
  • Well, there is a reasoning behind this
  • Both The Department Of Veterans Affairs and the HUD feel that they already are insuring the borrower with a VA and/or FHA Loan
  • As long as they have a history of paying their home loans, the will continue to do so

This is the reason why the VA and FHA do not require a home appraisal and/or credit requirements.

Importance Of Credit Scores

As mentioned in the previous paragraph, borrowers can have bad credit in the past 12 months with the exception of their current mortgage loans and qualify for VA and/or FHA Streamlines. There is no minimum credit score requirement on VA And FHA Streamline Refinance Mortgage Loans. There are two types of streamlines:

  • No credit score streamlines
  • Credit score qualifying streamlines

Higher Credit Scores Means Lower Rates

Do higher credit scores mean lower rates

Borrowers with higher credit scores should go with the credit score qualifying streamline refinance. The reason is credit score streamlines can offer substantial lower mortgage rates. The higher the borrower’s credit scores, the lower their interest rates. Borrowers who closed on the VA and/or FHA Loans with lower credit scores can explore doing a streamline refinance after six months when their scores have increased. There is no cost on streamlines and borrowers can skip two month’s mortgage payments after they close on their streamline.

Qualifying With A Lender With No Overlays

For more information on Streamline Refinance Mortgages, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. Streamline Refinance Mortgage Loans are becoming more and more popular. The Team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. We are direct lenders with no overlays on government and conventional loans.

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