Eligible Veteran
An individual who served on active duty in the Army, Navy, Air Force, Marines, or Coast Guard, and who, (except for a service member on active duty) was discharged or released from active duty under conditions other than dishonorable; or was a member of the Reserves and National Guard upon completion of 6 years of service; or an unmarried surviving spouse of a veteran who died as a result of service or service-connected causes.

Credit
– Minimum credit score of 580
– Credit report used to validate FICO and subject property mortgage payment history only
– All borrowers must have a valid social security number and at least one valid credit score
– Non- traditional credit not allowed

Salaried | Hourly Borrower(s)
– Verification of Employment or alternative income verification required to confirm borrower has income source at time of application (only one source of income required). This is required for borrower’s primary employment income only and not required for retired borrowers (of retirement age) or spouse.

Self-Employed Borrower(s)
– Business must have been in existence for at least two years
– Personal signed individual tax returns as well as the corporate or partnership tax returns for the two most recent tax periods

Properties Listed for Sale
– Primary residence only |Limited Cash-Out | Cash-Out Refinance loans
– The subject property must be taken off the market on or before the loan closing date and the borrower must confirm their intent to occupy the subject property

Minimum Credit Score
– Minimum credit score of 580 required for all borrowers, regardless of Automated Underwriting decision.

Minimum Loan Amount
– Minimum loan amount $125,000 for all property types

Mortgage rating
– No lates accepted in the last 12 months

Bankruptcy
– CH7 Bankruptcy requires 24 months seasoning from discharge date
– CH13 Bankruptcy requires 12 months worth of acceptable payments have been made

Foreclosure
– Minimum 24 months seasoning from completion

Reserves
– Reserves not required

Underwriting
All IRRRLs must be manually underwritten and not submitted Fannie Mae Desktop Underwriting or Freddie Mac Loan Prospector

VA Funding Fee
– .5% for Non exempt veterans
– Waived for veterans with 10% or more disability rating

Eligible Property Types
– 1-Unit attached and detached SFR, PUD, condominium

– 2-4 Units- Standard and High Balance loan amounts up to $3,000,000

Net Tangible Benefit
– Interest Rate Decrease Requirement: An IRRRL (which can be a fixed rate, hybrid Adjustable Rate Mortgage (ARM) or traditional ARM) must bear a .5% lower interest rate than the loan it is refinancing unless the loan it is refinancing is an ARM.

The VA Streamline Loan provides eligible veterans and active-duty service members with a simplified and cost-effective way to refinance their VA guaranteed home loan. With reduced documentation, lower interest rates, and no out-of-pocket expenses, this program offers significant benefits to those seeking to lower their monthly mortgage payments. However, it’s important to consider the net tangible benefit, and understand the closing fees and funding fee requirement.