Top Reasons Why A VA Streamline Refinance Makes Sense

Do you have a VA loan already and wondering about your options to refinance in order to take advantage of historically low interest rates? If so, then this post is for you.
Given you already have a VA loan you may be surprised what options you have to refinance your mortgage. Unlike most refinance mortgage programs with Fannie Mae and Freddie Mac, the VA has a loan program called the VA Streamline Refinance that requires very little on your part to qualify.
The hardest part of qualifying for a VA streamline is to make all of your mortgage payments on time the previous 12 months. In addition to this requirement/reason for considering the VA Streamline refinance program here are a few additional reasons.

Three Features Of The VA Streamline Refinance Mortgage

For starters, the VA allows you to refinance your current VA without an appraisal. Unlike most other refinancing programs, the VA figures that if you are already making your mortgage payments as agreed why should you have to jump through a lot of hoops to refinance if the refinance you are going to do lowers your payments. In general, the key here is that your new mortgage payment must be at a lower monthly amount than your current mortgage payment to be able to get the streamline refinance program without an appraisal.

One caveat to this: some VA mortgage lenders are starting to require that you get an appraisal on your home if you are going to do a VA streamline refinance. This is an additional and conservative requirement that is not required by the VA, but rather the lenders as a way of "protecting" their money against default and other risk factors.

Another great feature of the VA Streamline mortgage is that the program allows you to defer up to 2 mortgage payments for whatever reason. You can pay down some other higher interest debt if you want to, or you can sock the money away for a future use.

And the last really great feature of the VA streamline mortgage is that you do not have provide income or asset information like you did when you first got your mortgage. Again, the VA’s position here is if you are already making payments then if you can get a lower payment then why should you have to requalify for a new loan. Similarily however to what is happening with some lenders and the appraisal – some lenders are requiring you to provide some income documentation.

Make sure you speak to your VA loan officer to find out exactly what will be required of you as you apply for your VA streamline mortgage.