VA Streamline Refinance Guidelines and Instructions
It is said that over 27 million U.S service personnel and veterans qualify for the VA home loans. Since veterans can obtain 100% of the cost price of a house, most of them take VA loans. Later they find it worthwhile to refinance, as interest rates are low. Hence, veterans get good bargains through VA streamline refinance rates.
General Prerequisites of VA Streamline Refinance Loans
Home buyers should meet a few conditions before they can avail of VA IRRRL.
•Firstly, home buyers should be veterans and reside in the property they purchase through this loan.
•Home appraisals are not required, neither any income verification. If the homeowner has paid his mortgage payments every month in the previous year, he can qualify for an interest rate reduction refinancing loan. However, if he has a conventional loan, he cannot qualify for a refinance.
•A veteran cannot use the proceeds of a refinance for anything other than a home mortgage.
•Only if you have a fixed-rate VA loan can you refinance. If it’s an adjustable-rate, a refinance can be used only if it is higher than the proposed rate.
•Homeowners using VA IRRRL cannot receive cash in this program. Nonetheless, $6000 can be used for energy efficiency enhancements.
Lender Guidelines Made Easier for VA IRRRL
Now, veterans find it easy to find approved lenders for refinancing. Earlier, home appraisals were necessary for refinancing which is not the case now. The aim of home appraisals was for the lenders to confirm if the loan amount was higher than the home value. The new VA guidelines help veterans to have a low fixed interest rate reduction refinancing loan.
Although, VA has no authorized FICO score condition, lenders in the U.S have now set a strict FICO score of 620. Most lenders consider the FICO score and give loans on an individual basis.
VA Streamline Refinance Rates
In the world of real estate, interest rates are significant. Since there is a constant fluctuation in all types of loan interest, it’s wise to find a suitable one and lock it. This is where VA streamline refinance rates are good especially in today’s economical situation. When you qualify to refinance, you will be given options to either select a fixed rate of interest or an adjustable rate mortgage (ARM). It is advisable to lock your interest since you won’t know what the rates will be like at closure time.
VA streamline interest rates have been historically low for some time. Therefore, it’s wise to go in for a refinance where you can save a lot of money. You have the opportunity to compare lending rates and select the best lender for refinancing.
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