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How to Refinance the VA Streamline Process

If you're a veteran and a homeowner and you need to move, you might think your options are limited, or that you'll have to settle for a short sale or foreclosure. Maybe you've even thought about renting. But with home prices on the decline, maybe you think you can't make up the difference between what you can get for monthly rent in today's market and what you need to cover your monthly mortgage payments.

If that's what you're worried about, it's time learn more about the Interest Rate Reduction Refinance Loan (IRRR), also known as VA home loan streamline refinance. Regardless of what you've been told, you can streamline a residential investment property. You'll increase your chances of success if you work with a lender who understands the VA streamline process and has previous experience with this refinance program.

Most refinancing programs require a current appraisal on the property, but that's not the case with VA streamlines. This is great news for veterans whose property values have declined. And because VA loans are partially guaranteed, you won't have to pay private mortgage insurance, either. Instead of a certificate of eligibility, which you needed when you first applied for your VA loan, a cable or utility bill or other mail addressed to you is all that's needed as proof you live at the address.

Another benefit of refinancing is the ability to defer payments. While undergoing the refinance process, you won't have to make a payment to your current lender. Once your refinance loan closes, your next payment won't be due for four weeks. That gives you in essence, about eight weeks to save money, making it easier to come up with difference between the rent and your mortgage payment.

And there's more. With a VA streamline refinance, the income verification requirement is waived provided you have made the past year's worth of mortgage payments on time. Also, you shouldn't let less-than-perfect credit dissuade you from pursuing a refinance. Low credit scores may disqualify you for a conventional loan or FHA loan. But remember, VA loans are backed by the VA so lenders aren't assuming as much risk. Just ask whether the lender will work with you.

See, you have more options than you realize. So go ahead and meet with a lender to discuss your option.

Consultations are free. By lowering your mortgage you may be able to lower the rent and still earn enough income to cover your mortgage payments. It doesn't get better than that!

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