The unfortunate fact is that not everyone is eligible for VA streamlined mortgage refinance. If, however, you prove to qualify then you stand to enjoy various advantages.
5 Benefits of Getting VA Streamlined Mortgage Refinance
VA streamlined mortgage refinancing is different from other types of loans because of the unique benefits it offers, some of which are listed below.
No Appraisal Requirements
Property assessment has always been part and parcel of the loan application process but VA streamlined mortgage refinancing is a definite exception. As long as you prove to meet the requirements for the loan, an appraisal of your property is no longer necessary. Automated valuation or a drive-by assessment would more than do.
No Credit Check
VA doesnt care about your current credit rating. This may be bad news for those who have worked hard to maintain a stellar credit score but its sure to be good news for those with poor credit scores.
The absence of a credit check, however, doesnt mean you dont have to meet any other credit-related requirements. To become eligible for VA streamlined refinancing, you need to have an existing loan than youre currently paying for. If you dont have a loan then what you need is financing and not refinancing. Secondly, you must prove that youve been able to pay on time for the last twelve months or at the very least, you havent submitted your payment later than 30 days following your supposed deadline more than once.
No Income Documentation Requirement
VA doesnt care about where youre getting your income from either. Unlike with other creditors, you wont need to email or fax proof of your income. It doesnt matter if youre receiving cash income. It doesnt matter if youre self-employed. It doesnt matter if youre completely reliant on the financial support provided by your loved ones.
No Job Verification
In connection to that, one thing you shouldnt have to prove is the existence of your job. In fact, theres no need to lie. If youre currently unemployed then so be it. The VA wont care. They use a filtering process for loan applicants different from other creditors.
No Immediate Payment Required
Depending on your financial situation, current circumstances, and eligibility, the VA might be generous enough to give you up to a 2-month grace period before youre required to make your first monthly payment for your loan. This might not seem much at first glance, but just imagine how much easier budgeting can be if you wont have to worry about settling your monthly dues for two months!
Get Refunds
This is not, however, applicable for any situation. In particular, the VA may be able to refund your money if you have an existing escrow account.
Easy Loan Closing Process
You wont have to worry about closing costs and delays when it comes to VA streamlined refinancing. Firstly, you can leave it to your future mortgage provider the VA in other words to take over the closing process. Secondly, if there are any closing fees you have to pay, the VA shall take care of that and theyll simply add the total to your refinance loan balance. You wont have to pay for them immediately either; theyll be part of your monthly payment instead.
One thing you should be aware of, however, is that VA streamlined mortgage refinance does not offer cash out options. If you want that, youre better off with a VA cash-out refinance loan!