Streamline Refinance

There are two types of streamline refinance loans, the VA streamline and the FHA streamline.  In both cases you must already have either a FHA or a VA mortgage with a solid mortgage history of at least a year. 

Do you qualify for a streamline refinance?  FHA and VA mortgage loans do not have minimum credit scores requirements from the agencies however; most government lenders have instituted their own credit score minimum in an effort to ensure the mortgage originated can be insured.  The streamline refinance programs are available with both VA and FHA home mortgage loans to borrowers who already have a government mortgage and are seeking a rate and term refinance.  Many of the VA lenders today have extended a unique refinancing opportunity with the VA streamline that require no minimum credit score. There are a few government lenders that have extended refinance offers with without any credit requirements.  Ask your loan consultant about the FHA streamline opportunities. 

No Income Verified with the Streamline Refinance

If you are eligible for military financing than the VA streamline refinance may be the answers to your prayers, because credit scores are not considered with streamline refinancing.  The VA lender will do a 1-year mortgage history in an effort to verify that you have made your mortgage payments on time.  The VA Streamline program is different than most VA refinancing options because with the streamline there is no option for cash out and the underwriter must agree that there is a benefit for the borrower to do a streamline refinance because it saves them money with a lower monthly payment or a reduced term that enables the borrowers to pay off the mortgage quicker.  Since there is no income documentation required, a lot of borrowers that were previously rejected now have a legitimate opportunity to refinance into a record low interest rate.

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