How Does The VA Streamline Refinance Mortgage Program work? Homeowners with a current VA loan can qualify for a VA streamline loan. HUD and the VA are the only federal government agencies that offer streamline refinancing loan programs on FHA loans and VA loans.

What Is the Primary Purpose For VA Streamline Refinance Loans

VA streamline refinance loans is a streamlined fast-track refinance loan program where there is no home appraisal or income documentation is required. The U.S. Department of Veterans Affairs VA) is the federal government agency administering the VA mortgage loan program. The VA is a giant federal agency in charge of VA home purchase loans, refinance loans, and VA streamline refinance mortgages. 

VA Credit Score Requirements On VA Streamline

Credit scores are used to determine mortgage rates. In today’s historic low rate environment, homeowners with VA loans should definitely get a quote in refinancing their VA loan through a VA Streamline Mortgage. VA Streamlines only take two to three weeks at most from the time the application has been disclosed and Loan Estimate signed to closing and funding.

How Long Does The VA Streamline Take From Application To Closing

One of the most common frequently asked questions we get asked at Capital Lending Network, Inc. is how long does VA streamline refinance take? The loan process is substantially shorter than a traditional VA home purchase loan process. This is because the VA streamline refinance loan program is a fast-track refinance loan program with limited documentation, no income verification or income docs required, no appraisal, and no credit score requirements on non-credit qualification VA loans. VA streamlines are nothing like the initial home purchase VA loan process. Capital Lending Network, Inc. has closed most VA streamline refinance loans in two to three weeks.

How Does The VA Streamline Mortgage Work And Am I Eligible

How Do You Qualify For VA Streamline Mortgage

If your current mortgage loan is a VA Loan, you can qualify for a VA Streamline Refinance Mortgage loan where there is 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.

VA Streamline Loans With Bad Credit

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.

VA Streamline Loan Requirements On Timely Housing Payments In The Past 12 Months

The Department of Veteran Affairs does require that homeowners 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 valid extenuating circumstances.

VA Appraisal And Income Requirements On Streamline Refinances

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.

Refinancing Other Loan Program To VA Loans

You can do a cash-out refinance a 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. 

VA Maximum Loan To Value Limit On VA Cash-Out Refinance Mortgages

You can cash out up to 100% loan to value on 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 Refinance.  VA Appraisal is required, income verification is required, and credit scores are required on all cash-out VA Loan Refinances.

Mortgage Lenders Versus Lead Generation Companies

Most mortgage news websites are lead generation companies and will sell your information to mortgage companies. CLN Mortgage is not a lead generation company. Only members of our team will be contacting you on your mortgage inquiries. The information contained on Capital Lending Network, Inc. website is for informational purposes only and is not an advertisement for products offered by CLN Mortgage or its parent company GCA Mortgage Group. The views and opinions expressed herein are those of the author and/or guest writers of CLN Mortgage and/or its affiliates and/or subsidiaries. Capital Lending Network, Inc. is not a lead generation company and is represented by a team of licensed mortgage loan originators.

VA Refinance Agency Guidelines

Streamline Refinance Mortgage Guidelines state that a homeowner can refinance their current home loans with an equivalent loan with limited docs with a fast track process.

• Can only do a rate and term refinance
• Cannot get any cash-out proceeds from the refinance
• Borrowers need to get a net tangible benefit from the streamline
• No appraisal or income documentation is required
• Lower monthly mortgage payment 
• No cash to close by homeowners when they do a streamline
• Often, borrowers get to skip one month’s mortgage payment
• Closings can be done at homeowners’ home

Per streamline refinance mortgage guidelines, there are two different loan programs that homeowners can refinance via streamline. They are FHA and VA Loans.

How Do FHA And VA Streamline Refinance Loans Work

VA and FHA loans are the only two mortgage loan programs that allow streamlining. Both the agency guidelines on FHA and VA loans are exactly the same on streamlines.

The Reason Why HUD And The VA Do Not Require Appraisals On Streamlines

Both FHA and VA do not require home appraisals on Streamline Refinances. No income documents are required. The reason being is that these agencies already insure homeowners’ VA and/or FHA Loans. Borrowers have proven they have been making timely payments for at least the past six months. Loan amounts cannot surpass the original loan amount. So if they are insuring the mortgage, why would they not continue to insure the mortgage when borrowers are getting a lower payment? Both agencies are assuming borrowers already have been fully qualified and proven themselves. This is the reason why appraisals and income verification are not required per Streamline Refinance Mortgage Guidelines.

How Long Does The Streamline Process Work?

Streamlines are quick, easy, and very fast to close. Most streamlined refinances close in 2 weeks or less. There are no minimum credit score requirements. However, higher credit scores mean lower rates. The only credit requirement on streamlines is that borrowers be timely on their current mortgage payments in the past 12 months. One 30-day late payment in the past 30 days is allowed.

Net Tangible Benefit To Borrowers

In order for lenders to proceed with either VA and/or FHA Streamline Refinance is the refinance needs to offer a net tangible benefit to borrowers.

• Need to lower current mortgage payment by at least 5% or more
• Refund of the current escrow account to borrowers
• Borrowers can skip up to two mortgage payments
• No cash to close and/or out-of-pocket expenses
• One of the current Streamline Refinance Requirements is that homeowners’ mortgage needs to be current

Borrowers can go over a net tangible benefit worksheet, which determines the benefits of doing a streamlined refinance. 

FHA And VA Streamline Refinance With Low Scores

Borrowers can benefit from streamlines by refinancing their adjustable-rate mortgages to a 15 and/or 30-year fixed-rate mortgage.  Need to have made at least six payments on a new home purchase to qualify. CLN offers no minimum credit score streamlines. Can use mortgage payment history with no credit scores for non-credit qualifying VA and/or FHA Streamline Refinance. The maximum amount of cash being refunded to borrowers cannot be greater than $500.

HUD And VA Streamline Refinance Mortgage Guidelines During And After Bankruptcy

There are specific FHA and VA Streamline Mortgage Guidelines During And After Bankruptcy:

Chapter 13 bankruptcy:

• Borrowers can do streamline during Chapter 13 Bankruptcy if the following is met:
• The borrower obtains Trustee Approval
• Proof that the bankruptcy plan payment has been satisfactory during the term of repayment
• No waiting period after the Chapter 13 Bankruptcy discharge date

Chapter 7 Bankruptcy:

• To qualify, the Chapter 7 Bankruptcy needs to be discharged
• There is no waiting period after the Chapter 7 Bankruptcy discharge date 

Borrowers who feel they may benefit from VA and/or FHA Streamline Refinancing, please contact us at Capital Lending Network Mortgage Group at 888-900-1020. CLN is available 7 days a week, evenings, weekends, and holidays.