In many cases, refinancing your existing mortgage can provide you with a number of benefits that you would not be able to realize with your current loan. When you happen to have a loan that is backed up by the Veterans Administration, you may be able to take advantage of a program known as the VA streamline refinance. What exactly is the Maryland VA streamline refinance program and how does it help homeowners?
VA Streamline Refinance Basics
The ultimate goal of the Maryland VA streamline refinance program is to simplify the refinance process for borrower and lender. With this type of refinance, you do not have to go through the traditional qualification process. They do not need to verify your income, check your credit, or do an appraisal. This has the potential to significantly speed up the process of refinancing your loan and it might make it possible to refinance when other loans would not be available to you.
How it Differs from Traditional Refinance
The primary way that this type of refinance differs from other VA refinance options is in the streamlined and simplified process. You don't have to do a lot of paperwork and you don't have to wait for the bank to verify everything. They just take your application and in a short amount of time later, you are approved for a refinance. There are some simple guidelines that must be met in order for you to qualify for this type of refinance loan.
VA Streamline Refinance Guidelines
In order to qualify for the streamline refinance, you must have a positive payment history for the last three months. This means that you can't be late or have missed a payment during that time. You also must have not refinanced within the previous 210 days. You also must be able to show that there is some financial benefit in doing that refinance. You cannot take cash out of the loan or use the loan balance to cover closing costs. This means that your primary objective to refinancing is to take advantage of lower interest rates and get a lower mortgage payment.
The Benefits of a VA Streamline Refinance
This type of loan can be beneficial in a number of different circumstances. For example, if you know that your credit score has dipped a little recently, you might not want to use a traditional loan because your interest rate may increase rather than decrease. With the streamline refinance, you don't have to worry about that. If your income isn't quite as high as it used to be, you can still get a loan. The lender knows that you went through the underwriting process at one point and you haven't defaulted on the loan yet. This develops a certain amount of trust with you, which means that the lender doesn't have to worry.
Overall, the streamline refinance is an attractive refinancing option for the average VA borrower. If you have a VA loan and your payment is too high, it might be the best approach for you to take.
If you currently have a VA loan, we offer Maryland VA streamline refinance to help you lower your mortgage interest rate and monthly payments. With the simple process, we will be happy to get you started. Simply fill out the online application and one of our Maryland VA Streamline specialists will contact you as soon as possible.