Refinancing with a VA Loan
he U.S. Department of Veterans Affairs administers home loans to qualified individuals through its VA Loan Guaranty Service. According to the VA’s website, more than 27 million veterans and service personnel are eligible for home loan financing through the VA. The program offers many benefits. Qualified veterans are eligible for loans up to 100 percent of the purchase price of a home. After veterans buy homes with a VA loan, they have an opportunity to refinance their homes through the VA Streamline Refinance. There are requirements for these loans, but the requirements are not as stringent as those required for regular VA loans.
VA loan refinance requirements
To obtain a VA guaranteed home loan or a VA refinance loan, home buyers must meet several requirements. Chiefly, homeowners must reside in the home, and they must qualify as veterans. Under the regular VA loan program, though, the purchased home must be appraised, and home buyers must provide income verification. Lenders also require credit qualifying. With the VA’s mortgage refinance program, there is no need for an appraisal, and there is no income verification or credit qualifying. As long as the homeowner has not had more than one 30-day-late mortgage payment in the past 12 months, the homeowner can qualify for the VA Streamline Refinance Loan. The loan refinance program is available only to homeowners who already have regular VA loans. If someone qualifies as a veteran but has a conventional mortgage, the individual does not meet the requirements for a VA refinance loan.