The VA streamline refinance is a great VA loan program for lowering your interest rate with very little hassle. In fact, the streamline refinance loan is one of the most popular home loan options for veterans. One of the key features of this option is that there is very little paperwork. So, if you’ve been thinking that it would be nice to refinance your home but you have almost no time to do it, this is perfect for you. If you are thinking about refinancing your VA home loan here is a VA streamline refinance checklist that will help you prepare.
VA Streamline Refinance Required Documents
The following VA IRRRL streamline refinance checklist shows everything required by the VA for this refinance. Although it may look like a long list, many of those items will be provided or obtained by your lender—not you. If you gather the necessary documents ahead of time, the process will be that much faster.
- Energy efficient changes, if applicable
- Lender certification that the borrower’s payments were on time
- Federal collection Policy Notice
- Closing Statement of the HUD-1
- Report and Certification of Loan Disbursement
- IRRRL worksheet showing the calculation of the max loan amount
- Borrower’s statement that he or she understands the implications of the IRRRL on the loan and his or her finances
- Acknowledgement of Receipt signed by the lender with regards to the funding fee document
- Loan summary
- Transmittal document
The Docs That Are Not Required
With the VA IRRRL, many items are cut out of the requirement list. No home appraisal is needed, no bank statements, no employment or income verification, and no credit score verification. Cutting these out of the refinance makes it quick and efficient. Just think about all the time that would have been spent on the home appraisal alone. This is possible because the lender simply takes a majority of the needed information from your previous VA loan. Since original VA home ownership isn’t possible without certain documents and verification’s, these things are not needed in the streamline refinance.
VA Streamline Refinance Lender Requirements
Although the VA only requires certain documentation, lenders will require a few additional documents to proceed. Some are necessary to complete for legal reasons while others are part of lender overlays. These are additional requirements put in place by individual lenders in order to lessen their risk in lending money. For example, the VA doesn’t require a borrower to have a credit score higher than a certain percentage. But individual lenders will often require a borrower to have a score of at least 720. This is an overlay. At Low VA Rates, we do not put overlays in place because we want to be able to help every veteran borrower that we can obtain an affordable home.
Another huge perk of the VA streamline is that you will get a lower interest rate in most cases. In fact, it’s a requirement that the borrower receive a net gain from the refinance. So if you aren’t saving money, the loan may not be approved. At Low VA Rates we offer terrific mortgage rates to help you do just that. If you have additional questions about the VA streamline refinance checklist give us a call at 855-223-0705 to speak with a VA streamline mortgage expert.