No Money for Down? Streamline Refinance Your VA Loan

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Many Americans veterans struggle to refinance their existing mortgage. What could be an opportunity to save from monthly mortgage payments slips away. One big stumbling block is that there many do not have money for down payment.

Do you feel like all the income that comes into your account just flies right out? It goes to paying the utility bills, the credit card, the mortgage, the insurance premiums, and all sorts of things. That only leaves you with enough to get through the next pay check. It seems like your income is barely enough.

Many fail to realize that refinancing their VA home loans today will mean savings once their interest rates are reduced.

VA rates are still at their rock-bottom lows. For 30-year fixed-rate VA home loans, mortgage interest rate is at 3.50 percent.

If you are letting this good deal slip away just because you are worried about the down payment, worry no more! With the VA streamline refinance you do not only have the option to roll all the refinance costs into the loan, you can also take a new loan without putting a down.

No Money for Down Payment May Raise Lenders’ Eyebrows… Or Not!

Not putting a down payment may seem risky for lenders. However, because the Veteran Affairs guarantees these loans, it makes up for the risk. So you do not have to think about lenders raising their eyebrows if you choose to refinance without a down payment.

Have we mentioned earlier that it is possible to refinance with “no-money-out-of-pocket”? This means that the VA funding fee (which cannot be waived), and the closing costs can be rolled into the new loan. It will be divided throughout your monthly mortgage payments. The interest rate will be adjusted so that it is high enough to cover these costs.

Get a quote without the hassle.

The Loan Application Process is Faster

This is simply because you do not need to submit documents for verification. The Certificate of Eligibility (COE) you have submitted on the previous application for a VA loan will suffice. You may show your previous COE to the lender as proof of your prior use of your entitlement.

Moreover, the VA does not require a borrower with a minimum credit score. There is no credit underwriting requirement when applying for an IRRRL. There is also no need for a home appraisal. For you to be eligible, you only need to certify that you have previously occupied the house.

The Veteran Affairs urges you to contact several VA-approved lenders.  Terms may vary from lender to lender. Shopping will help you find one with terms that fit your needs. No lender is required to process your refinance through VA Streamline. However, VA lender that may choose to process your an application for a VA Streamline Refinance.

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