VA Streamline Refinance Still Technically Easy To Get

What does it take to qualify for a VA streamline loan? Not as much as you might think. In fact, if you are an eligible service member or veteran or the spouse of a veteran who already has a VA home loan, the process to refinance your current VA loan to a lower interest rate with the VA streamline loan “technically” can be relatively quick and easy.

If you are current on your VA loan and have not had any 30 day late payments in the past 12 months, your qualifying time just got easier.

Well maybe:

Although “technically” the VA does not require a minimum credit score or a new home appraisal, some VA lenders now require an appraisal and also require that your credit score be at least 620 to get a VA streamline approved. In some cases you may even have to show some income documentation.

It is not overly clear though what happens if your home doesn’t exactly appraise where it needs to be to get the value you need to qualify as you move between different lenders.

If you are worried about your home’s value, before you pay any lender any application fees make sure to check around and ask the critical question: “do you require an appraisal for your VA streamline refinance?” and if they say yes, ask: “what does your bank do if my home’s value has gone down?” The answers to these questions will tell you whether you need to keep shopping for a new lender or if you found the lender who can do your refinance.

Chances are your income won’t be an issue (unless you aren’t making any) and your income hasn’t significantly changed nor have you taken on a lot more debt since you got your first VA loan.

If all is relatively the same then you should be smooth sailing. But if things changed for the worse, well, you may be slowed down in getting your streamline mortgage approved. If you aren’t working – well you will definitely have to look around to find a lender that doesn’t verify employment or income for your VA streamline. With the housing market still looking pretty grim out there, you may be facing even tighter qualification requirements if you too much longer to try your streamline refi.