VA Streamline Refinance Explained
A VA Loan from the Department of Veteran Affairs is probably the best residential mortgage loan program in existence where the mortgage rates are low and no mortgage insurance is required and no down payment is required. However, not everyone can qualify for a VA Loan. The mortgage loan borrower needs to be a member or veteran of the United States military and need a certificate of eligibility from the Department of Veterans Affairs.
How Do Your Qualify For VA Streamline Refinance
If your current mortgage loan is a VA Loan, you can qualify for a VA Streamline Refinance Mortgage loan where there are no appraisal required, no credit scores required, and no income verification required. Many homeowners who currently have a higher interest rate VA Loan can save thousands of dollars over the term of their VA mortgage loan by refinancing their VA Loan for a lower interest rate VA Loan.
Since there are no credit score minimum requirements to qualify for a VA Streamline Refinance Mortgage Loan, you can have recent late payments, except for your mortgage loan payment, and still qualify for a VA Streamline Refinance Mortgage Loan. 12 months of timely payment history is required for your current VA loan.
However, the Department of Veteran Affairs do require that homeowners to have been timely with their mortgage payments in the past 12 months. Depending on the VA Lender, one 30 day late payment in the past 12 months is allowed if the homeowner has a valid extenuating circumstances.
No Appraisal Is Required On VA Streamline Refinance
A new appraisal is not required with a VA Streamline Refinance Mortgage Loan. No income verification is required so meeting debt to income ratio requirements will not be an issue. The homeowner needs to be employed full time, however, verification of income is not required.
Cash Out VA Loan Refinance
You can do a cash out refinance mortgage on your current mortgage via a VA loan refinance mortgage. Many homeowners who have a VA Certificate of Eligibility do not have a current VA loan. They may have a conventional loan or FHA loan. If you have a Certificate of Eligibility from the Department of Veterans Administration, you can refinance your current loan to a VA loan. You can also do a cash out refinance VA loan. You can cash out up to 100% loan to value on a VA loans. A cash out VA Refinance Loan is not the same as a VA Streamline Refinance. You cannot do A cash out VA Refinance Streamline Loan. You can only do a rate and term VA Streamline Refianance. VA Appraisal is required, income verification is required, and credit scores is required on all cash out VA Loan Refinances.
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