VA Streamline Home Loans More Difficult To Get In Today’s Market

Are you a veteran who has looked into VA home loan refinancing with a VA streamline home loan in the current housing market? Then you may realize just how difficult it can be to get one of these loans today. The recent meltdown of the housing, finance and employment markets have made VA streamline home loans much more difficult to qualify for.
When the VA streamline refinance loan first came out a few years ago, it was intended to allow veterans to take advantage of lower interest rates with a minimum of effort. As long as the veteran was making payments on time or at least had a reasonable payment history, the VA could work with mortgage lenders to refinance the veteran’s interest rates to the new lower rate. Let’s take a look at some of the major VA home loan refinancing changes.

Refinancing a VA loan today

Credit scores. In the past, the veteran’s credit score did not matter to banks giving out VA home loan refinancing. Today, during the highest unemployment rate in decades, banks have made it much more difficult to refinance because they require veterans to have a high FICO score.

Proof of employment. Before, no proof of employment was needed. Now mortgage lenders do require employment to be proved before beginning refinancing.

Home values. Veterans now must show their home values have not dropped below what they owe on the home. In the current market, this is very difficult as housing prices have dropped drastically.

VA streamline refinancing was intended to help veterans save money and take advantage of low interest rates. It is unfortunate that our veterans today are having difficulty getting the entitlements they deserve.