Credit Scores Shape Lives
Your credit scores have a great impact on your life, especially when it comes to acquiring parts of the American dream. Those parts usually include a home. With excellent credit scores, doors open and everything from cars to credit cards become easy to acquire. Unfortunately, especially in these troubled times, many service members and veterans alike have taken bad hits on their credit histories. The VA Streamline Refinance for those with poor credit mitigates this credit damage when VA home owners seek refinancing.
Home Interest Rates at an All-Time Low
Home loan interest rates are at an all-time low. Civilians with poor credit scores who set out to refinance their homes often end up disappointed. They are not allowed to take advantage of these low rates. The news is better for veterans and active duty home owners with poor credit. The Veterans Administration has always offered great options for its distinguished service members and retirees. The VA Streamline Refinance for those with poor credit is among them.
Smart Move to Make
Members of the military, active duty or retired, can take advantage of these low interest rates by refinancing their current VA home loans with a VA Streamline Refinance for those with poor credit. If you have poor credit or excellent credit, VA guidelines have you covered. With a VA Streamline Refinance, you will not have to get a new appraisal. This is a great benefit. When the housing bubble burst, many home owners found themselves holding loans that cost more than the worth of the property. When the value of the home is less than the amount of the loan, you have what lenders call an upside-down mortgage. Taking a VA Streamline Refinance is a very smart move to make in this situation.
Know Your Benefits
Before you approach any lender about refinancing, it is important that you understand exactly what a VA Streamline Refinance for those with poor credit allows you to do. You will find many lenders who will discourage those with low credit scores and some may request a new appraisal. Of course, some lenders are just looking to protect their bottom lines and lessen their risks. Understand that the VA is guaranteeing the loan, making these demands unnecessary. Most lenders recognize this and are willing to work with those taking advantage of a VA Streamline Refinancing.
VA Guidelines Put Military Home Owners on the Upper Rung
Before you go shopping for a refinancing deal for your VA home loan, be aware of your entitlements. Four main benefits come with pursuing a VA Streamline Refinance for those with poor credit.
No credit scores are taken into account. Credit ratings of poor, fair, good, or excellent are all accepted.
The amount of the loan is being refinanced, not the house. No new appraisal is needed. Many loans are upside-down and this often prevents refinancing. The Streamline Refinance can sidestep this.
You should pay no expenses out-of-pocket. Any fees should be paid by the lender or rolled into the cost of the new loan. You do not have to bring any money to settlement.
Since you are currently in a VA home loan, there is no need to re-qualify for a VA Streamline Refinance. Your initial qualification for your original VA loan will suffice.
Lower Payments and Lower Interest Rates
A few other qualifications may be determined when you seek a VA Streamline Refinance for those with poor credit, but nothing insurmountable to the regular VA borrower. You will realize a lower interest rate and lower monthly payments. This puts a nice bit of flexibility into your monthly budget. You would do well to take advantage of this benefit that is not available to folks who are not service connected.