Many people do not realize that there is a much easier way to refinance a home these days. You may be one who has been mired in a pile of paperwork for the past 45 days waiting on your mortgage broker to call you back. And if you have a VA or FHA mortgage... the question is, "WHY?"
In fact, there is a little known refinance program available these days called a Streamline Refinance and it is gaining popularity. Many may still be confused about the specifics of a Streamline Refinance so we wanted to put together a little information for you to determine if you may qualify for this easy to use program.
First of all, you need to currently have a VA or an FHA mortgage... and you will have had to have been paying on it for more than 6 months. FHA requires you to have a clear pay history over the last 12 months with no 30 day lates while VA does allow you to have one 30 day late over the same time period.
Keep in mind, that you can not actually cash out any of your equity if you want to stay within the Streamline Guidelines... but there are other programs available in the market place that can effectively help you accomplish a goal of this kind. One side note to the "cash out" question is that VA will allow a $6,000 exception to this rule if you are going to use the funds to make your home more energy efficient.
Also, you can not end up with a higher loan amount than the original amount that you started with.
The nice part of a Streamline Refinance is that you could need very little documentation to qualify. In fact, it is a much easier process to experience than when you purchased your home.
Imagine how simple your refinance could be if you had:
*No Credit Check
*No Appraisal
*No Out Of Pocket Expense
*No Income Verification
*No Employment Verification
*Lower Interest Rate
*Lower Payment
This may sound too good to be true, and certain restrictions will apply... but you will want to investigate these programs further to know if they are right for you.
Why would anyone want to spend waste time and money when they are dealing with the most important investments of their lives... a home.
Be sure not to keep the Streamline Mortgage a secret... if you know someone who is struggling to refinance a VA or FHA mortgage, be sure to mention this article to them.
