Applications for home loan refinancing are on the rise as mortgage rates continue to dip.
In the process, homeowners across the country continue to discover the benefits of a VA Interest Rate Reduction Refinancing Loan (often called a VA Streamline), which remains among the most effective refinance programs on the market.
This low-hassle program is open to veterans with existing VA home loans. The VA does not require appraisals, credit underwriting packages or certificates of eligibility. That means some homeowners can avoid the headache of gathering financial documentation such as job verification and tax returns.
Even veterans with bad credit may be eligible for a VA Streamline. To be eligible, homeowners must be current on their mortgage and have no more than one 30-day late mortgage payment in the past year.
Homeowners can obtain a VA Streamline refinance without paying a single dollar out of pocket. The program can include closing costs and other expenses in a new loan or alter interest rates to ensure the lender can cover the additional costs. The VA also allows up to $6,000 in energy efficient improvement costs to be included in the Streamline refinance.
The only cost required by the VA is a one-half of one percent funding fee, which can be paid in cash on included in the loan. Homeowners cannot obtain cash from any Streamline refinance.
These unique loans can be obtained by any lender in the United States. Homeowners can obtain a VA Streamline from any approved and willing lender and need not utilize their current lending institution, or the lender who issued their initial VA home loan.
Homeowners do need to consider the likelihood that individual lenders will seek an appraisal and a thorough review of an applicant’s credit and financial history. The VA urges veterans to contact several lenders, as terms may differ.
