If you are a veteran, on active military duty, or a reservist, a VA streamline refinance may be your ticket to the easiest refinance program available. Don’t think about the often long, intensive process you went through to purchase your home originally. Because streamline programs mean refinances options with minimum documentation, they care often much easier and quicker than traditional refinances. Most of the tough parts of completing a traditional refinance are completely removed because of the VA streamline loan program.
Most Americans interested in refinancing their homes run into issues relating to one of the two following issues. 1) Either they don’t qualify because of a change in job or reduction in income (especially in this economy), or 2) their homes will not appraise. Also the situation is compounded because many of the loan products that were used to purchase the home during the housing bubble, are no longer available due to lenders tightening up their requirements. These issues are typical of a refinance on conventional loan products.
However, assuming you already have a VA loan, many lenders will a streamline refinance, as opposed to a traditional refinance. As a borrower, this should be music to your ears. Why? Because the requirements are much less strict.
In fact, through a VA streamline, you can refinance your home without:
- Any out of pocket costs
- No appraisal
- No job verification
- No income documentation
This means you can leave your wallet at home for closings as you will not have to pay out of pocket closing costs. Of course there are still closing costs to complete the loan, but these costs can be rolled back into the loan.
You also do not need to waste money on an appraisal on your home. These appraisals can be as much as $600.00 that typically you have to pay up front. Not to mention with the housing market in a slump, many homeowners can not get their home to appraise for what they owe on the home.
The VA won’t require verification of employment or income documentation either. Thats right, leave those pay stubs and W2s at home. This is also especially convenient if you are self employed as it is often difficult to prove your income.
What a fantastic VA benefit that could save you tens of thousands of dollars in interest over the lifetime of your loan.
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