If you have a VA home loan and want to refinance chances are you have your reasons for doing so. With this being the case you will need to know the difference between the regular VA mortgage refinance and the VA streamline refinance to make sure you get the right loan for your needs.
The VA streamline refinance is a great refinance program if you fit into allowable uses for the program. But if you do not fit into this program, the next best program if you wanted to stay with a VA mortgage would the VA Mortgage Refinance.
- The VA mortgage refinance mortgage allows you get cash out whereas the VA streamline does not.
- The VA mortgage refinance program allows you to consolidate debt as well as pay off an existing 2nd mortgage. The VA streamline mortgage does not.
- If you are an eligible veteran, you can refinance your current conventional mortgage into a VA mortgage refinance mortgage. You can only use the VA Streamline mortgage if you already have a VA loan.
Some facts about the VA Mortgage Refinance
- The VA Mortgage Refinance program is for eligible borrowers with existing VA mortgage or those with conventional mortgages (non-va).
- You can reuse some or all of your eligibility to purchase a new home, or refinance your current mortgage. You will need to speak to a VA loan officer to determine your exact eligibility.
- You will have to fully qualify for this mortgage similarly to what you had to do for a purchase mortgage. In other words you will need a VA appraisal, credit report with credit scores, proof of income with pay stubs and W2’s, and several months of bank statements. Note: these are the minimum documents you’ll need to gather if you are going to use this loan program.
Hopefully in reading this post, you got the message that the VA mortgage refinance is a versatile loan program that allows an eligible applicant many refinance options that fall outside of the program features associated with the VA Streamline.