Everything You Need to Know about VA Streamline Loans

If you or someone you know and care for has served in the military, they may qualify for a VA streamline loan. This type of VA loan is one of the most common out there and offers quite a bit for our active duty and retired armed services members.

At Indigo Mortgage, we really like to show our support of the United States military, which is why we enjoy keeping you all updated on VA loans.

Veterans Affairs Streamline Loan

The VA Streamline Loan is a program that has been specifically and exclusively designed for our military members. Using certain approved lenders and guaranteed by the Federal Government, the VA Streamline loan is one of the most common VA loans.

The first step is qualifying and here is how you know if you do:

• Military service persons must have 181 days during peacetime and 90 during wartime or have served 6 years in the reserves or National Guard.
• Spouses of any service member killed in the line of duty also qualify.
• Typically, any honorably discharged soldier will meet the above criteria and qualify.
• You can also qualify while still in active duty.
• However, a dishonorable discharge will disqualify you from any Veterans Affairs programs and benefits.

In a nutshell, the VA Streamline Loan allows you to refinance and lower your monthly mortgage and as long as you meet the Veteran Affairs’ simple requirements, you shouldn’t have any problems.

The VA Streamline Loan requirements are as follows:

• Be current on your mortgage payment and have no more than a single 30-day late payment in the past year. Basically, you just need to have kept up on your original loan payment.
•  The new loan payment needs to be lower than the previous. Obviously, you would want that and this is here to make sure you don’t get used by some lesser than reputable mortgage company.
• You are not allowed to receive any cash from the Streamline Refinance.
•  You must provide documentation that proves you have previously resided at the property. In other words, you can’t lower your girlfriend’s second cousin’s mortgage payment with your military benefits or do so on an investment property.
• You must have previously used your VA eligibility on the very property you are using to refinance.

Due to its simple nature, the VA Streamline Loan is really quite popular and with requirements that are easy to meet, it is no wonder as to why it is the most used VA loan service.